It’s just a fact of life. Audits happen. And when they do, you will receive an audit letter from the Internal Revenue Service, or the State of Wisconsin Department of Revenue. You do not have to attend the audit yourself. You can arrange for and sign a Tax Information Authorization. This form will list specifically which tax years and forms the Authorization may represent. An IRS audit letter will list what year the audit is for and specific items selected for examination. We have many years of training, an extensive track record of success and experience so we know what the IRS will accept as proof of expenses claimed. The tax auditors respect our work product and our representation of taxpayers.
What to expect:
It is up to you to provide documentation for the tax deductions that you took on your tax return. Your Representative has to work with what you are able to provide to take to an audit. The IRS wants documents such as bank statements, receipts, cancelled checks, mileage logs, automobile receipts with odometer readings, settlement statements, etc.
When your tax return was prepared, the expert who did your return did not ask to see and did not audit all of these specific documents. We trust that you will provide us with a year end total for the deductions you claimed, and keep the back-up papers for your records. In the event of an audit, you will need to produce those for us.
We will assist you in compiling these records when necessary. Please talk to us about situations where you do not have, or cannot find complete records to support the deductions you claimed. If you spent the money, we often can help you identify alternative ways to substantiate your expenditures.
How much time do I have?
The IRS will allow you about a month to compile records. When you have difficulty, the auditor will start with the records you have and allow additional time for information you continue to gather.
How much does it cost to have Audit representation?
We ask for a retainer fee of $750. Additional charges will be based on the time it takes to put your records together in a presentable format, meetings with the auditor, additional research on specific items, etc.
Will I have to pay more taxes?
If your records are in good order and all deductions are allowed there would be no additional taxes to pay. If you had deductions you missed originally you may even get a refund. If items are disallowed, you may owe tax, penalties and interest.
What if I disagree with the result?
There is always the option of asking for an Audit Reconsideration, tax appeals and even Tax Court. Again, the final result is determined by your ability to provide accurate records. Our ability to represent you can only be as good as the information you provide us.
If you received an audit letter and you need audit assistance, call (608) 233-9769 today.