If you are a taxpayer in America, you might have heard a lot about the IRS. You would also be aware of taxpayers receiving audit letters from IRS. It is common for people to panic when they receive an audit letter from the IRS. Well, one of America’s most talented tax advisors, Karla Dennis, believes you do not need to worry about the IRS if you just know the basics of an audit.
Understand The Types of Audits
Karla believes that everyone needs to understand audits since there are distinct types of audits. Most audits, she says, are in the form of correspondence. If you receive a letter from the IRS letting you know that your return has been selected for audit, then you know you are in an office or field audit scenario.
Karla says that it is more than likely the IRS will send you a CP 2000 notice. In this case, the IRS will compare their internal income and expense records reported to them by 3rd parties to what you have reported to them on the return. If you run a business, you may receive an office audit. In some cases, the IRS may come to you, which is known as a field audit. The point is, Karla says, as a taxpayer, you need to know the kinds of audits there are and what letters the IRS may send you.
If you want to learn more about the different audits and audit techniques, you can check out Karla’s YouTube and Instagram pages.
Responding to an IRS Letter
The hardest part, of course, is responding to an IRS letter. That is where a lot of people make a lot of mistakes. Since it isquite difficult to get an audit right, you always need to have a firm like Karla Dennis and Associates, Inc. on your side to make sure you do everything according to the books. If you do not get it right, the IRS may disallow all your deductions or issue a summons for you to turn over all your records to them. That is why Karla recommends responding timely and accurately.
The best way to make sure you respond correctly, Karla suggests, is to read all the directions and instructions in the letter you receive, making sure you understand every bit of it. One thing that Karla always recommends to her clients is to never represent themselves in field or office audits. That is because many technical matters may trip you and erroneously have you saying or doing something that goes against you.
ALWAYS report all your income to the IRS. If you do not, it may trigger an audit. Likewise, if you do not file a tax return on time, that is a red flag! The IRS will notice it immediately, put you on their radar, and eventually audit your return.
How can Karla Help You?
If you want to get everything 100% right, consult Karla’s firm. Karla and her team will represent you before o the IRS so that you do not have to confront the IRS directly. Karla’s team is licensed as Enrolled Agents, which is why Karla Dennis and Associates, Inc. will shield you from the IRS no matter where you are in all the 50 states of America!