August2017

Learn How Can You Prepare For Your Tax Audit

It is obvious to feel anxious when the income tax authorities want to conduct an audit based on the tax return filed by you. At such critical times, all you need is to understand the examination process and your privileges as a taxpayer to face the situation in the best way.

Learn about the type of audits

“Mail in” Audits

You will receive a mail stating that the income tax department has selected you or your company for an audit. You will be provided with all the instructions for a specific tax year. Such types of audits occur due to a data mismatch between your earnings and information that is reported to the department about you by 3rd parties.

There are several reputed tax practitioners in NY who have experience in handling different types of tax credit cases. Lawyers that deal with NY state tax audits would suggest you the best course of action to represent your case under such processing.

“In-person” Audits

If you have been called for a one to one meeting by the income tax department for the audit, then it can be due to various issues with the tax return you have filed. You will be provided with a deadline to communicate with the agent to schedule the audit procedure. It is advisable to schedule it at the office of the examiner to avoid visits by IRS at your home or workplace.

What documents should you gather when preparing for an audit?

The main objective of conducting an audit is to check whether the items that you are claiming for on the tax return are accurate or not. As a proof for this, you have to come up with all the necessary acceptable documents. These are:

  • Proof to prove expense payments
  • Proof to prove dependents
  • Proof to prove business expenditure

Conclusion

Whether the audit is conducted via email or in person, these are some of the best tips that would help you sail through the process easily.