Leaving off legitimate deductions just costs you money without keeping the IRS from calling.
San Francisco, CA (Vocus/PRWEB) February 24, 2011
Sterck Kulik O’Neill Accounting Group in San Francisco has recently posted a new video on their website which addresses the urban legend of specific IRS audit “red flags” and how to survive an IRS audit. The video states there is no single number on an income tax form that will trigger an audit, nor is there a specific number that will protect people from an IRS audit. The site also provides advice on how to survive an IRS audit, which includes reporting legitimate deductions and organizing all information.
“‘What did I do wrong?’ or ‘Did I claim too much as a business expense?’ is the first reaction of people when they call about an audit notice from the IRS,” said Certified Public Accountant Geoffrey Kulik, a partner in Sterck Kulik O’Neill Accounting Group in San Francisco. “The IRS doesn’t tell taxpayers how, or even if, it programs its computer to select returns for a review. The best way to respond to an IRS audit is to assume that your number simply came up and the IRS decided it was your turn to be audited.”
In the video posted on the firm’s website, Kulik cautions against trying to cook the numbers on an individual’s return to match what they think the IRS wants to see. He advises taxpayers to file truthfully. It’s widely believed that over-reporting deductions will be troublesome to the IRS during an audit, but underreporting is not a better idea. Declaring fewer deductions than what a taxpayer is entitled to in any area is certain to increase a tax bill and does not protect against an IRS audit.
“People get in trouble for claiming false deductions, not by not putting down amounts that they are entitled to,” said Kulik. “Leaving off legitimate deductions just costs you money without keeping the IRS from calling.”
If the IRS audits a return, a taxpayer’s CPA can make sure that they have the right documentation for the deductions they claim and can organize the information so that the review is as quick and painless as possible.
For more information about the IRS audit video or any of Sterck Kulik O'Neill Accounting Group’s services, call them at (415) 263-9065 or visit them on the web at http://www.skocpa.com.
About Sterck Kulik O’Neill Accounting Group
Sterck Kulik O’Neill Accounting Group is a San Francisco CPA firm that specializes in tax services, business development, strategic planning, and IRS audits in San Francisco. Sterck Kulik O’Neill Accounting Group serves all San Francisco Bay Area communities.
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