Phil Liberatore, CPA Outlines Important Steps to Take if You're Audited by The IRS

USA - English

• USA - English

LA MIRADA, Calif., Sept. 23, 2019 /PRNewswire-PRWeb/ -- If you have ever received a notice from the Internal Revenue Service (IRS), the initial reaction is fear, but don't be so quick to jump to assumptions. If you have accurately reported the items on your tax return, there should be nothing to worry about if you get contacted about an audit.

An audit or examination is a way for the IRS to determine what may be missing or irregular on your tax return. The IRS usually has three years from the due date to verify the accuracy of your return.

The IRS relies heavily on income reported from third-party reporting from your employer. When you report your W-2 on your tax return, the IRS Is expects to see the same numbers reported by your employer on your W-2. If you don't receive a W-2 and are self-employed, you don't have the luxury of third-party reporting to the IRS.

Most people might think there's a specific formula that the IRS uses to determine who gets a letter examining your return (audit) but in reality, it's not that simple. If you receive a letter, it can be one of two types, either a CP2000, which is the most common or a letter asking for actual documentation as proof of the information you reported, such as receipts for your deductions.

A CP2000 letter is computer generated and will either inform you of information that didn't match to what was reported or was left off the return completely. It's not uncommon for the IRS to be incorrect in their findings and can usually be cleared up with a written explanation and sent to the IRS.

"You are not alone- don't take on the IRS on your own. Hire a trusted professional who knows how to handle the IRS and navigate through the process of responding to these notices. When IRS plays hardball, I'm your Heavy Hitter!" - Phil Liberatore, CPA

SOURCE Philip L. Liberatore CPA