If you are audited by the IRS and you don’t have the records to back up your deductions, you are going run into a lot of trouble and you’re probably going to end up owing a lot of money.
Sandy, UT (PRWEB) March 23, 2011
The IRS is continually increasing the amount of income tax audits they conduct each year. Tax professionals from Soulence Tax and Accounting worry that the general public is not prepared for the increase in audits.
According to the “Internal Revenue Service Fiscal Year 2009 Enforcement Results,” the IRS has increased the amount of audits they perform every year since 2000. The amount of audits has more than doubled in the past 10 years, rising from 617,765 in 2000 to 1,425,888 in 2009. If the IRS continues this trend we can expect 44,059 more audits this year than last making the total anticipated audits approximately 1,512,723 this coming year.
Tax professional Christopher Anderson of Soulence Tax and Accounting is concerned that the general public is not prepared to handle this influx in IRS audits. “I’d say the biggest problem is that people just don’t know what records to keep and how to keep them. If you are audited by the IRS and you don’t have the records to back up your deductions, you are going run into a lot of trouble and you’re probably going to end up owing a lot of money” Anderson said.
Christopher Anderson’s partner Kathy Anderson is equally concerned about the unprepared public. She related this story about one of her tax preparation clients that was recently audited. “Essentially, our client was audited by the IRS because he had hired a family friend to do his accounting. The friend accidentally entered all of his expenses twice, making his deductions twice as big as they actually were. The IRS saw the excessive deductions, which is why they audited him. After a year of meeting with IRS agents and verifying each and every transaction, our client ended up owing $40,000 in taxes. After this experience, he definitely learned what he needed to keep track of. Unfortunately, he learned it the hard way,” Kathy Anderson said.
Christopher and Kathy Anderson are not sitting by and allowing American citizens or businesses face this increase in IRS audits alone. They are dedicated to educating people so they have the essential knowledge to face an audit. “A great resource to learn exactly what you need to know about how to avoid being audited and to hold your ground in case of an audit is a website called http://www.avoidbeingaudited.com. They have some free information that I recommend to all our clients,” Christopher Anderson said.
Avoidbeingaudited.com offers a free video report that is geared toward show individuals and business owners exactly what they need to know and do to be prepared for an audit. To access this free video report, you can go to http://www.avoidbeingaudited.com.