An IRS audit can feel intimidating, but with the right preparation and support, you can navigate the process successfully. Whether you’re an individual or a small business owner in Plantation, here’s what you need to do if you’re audited.

1. Understand the Types of Audits

  • Correspondence Audit: Conducted via mail; typically requests documentation for specific items.
  • Office Audit: Requires a visit to a local IRS office.
  • Field Audit: The most comprehensive, conducted at your home or business.

2. Respond Promptly and Professionally

  • What to Do:
    • Gather the requested documentation.
    • Respond by the deadline specified in the IRS notice.
  • Pro Tip: Keep your communication factual and avoid speculation.

3. Organize Your Records

  • What the IRS May Request:
    • Receipts, invoices, and bank statements.
    • Tax returns from previous years.
  • Example: A Plantation business owner provided complete expense records, resolving the audit without penalties.

4. Work with a Tax Professional

  • Why It’s Essential:
    • Professionals can identify what the IRS is looking for.
    • They handle communication and representation, reducing your stress.

5. Prevent Future Audits

  • Tips:
    • Report all income, including 1099 and cash payments.
    • Avoid claiming excessive deductions without proper documentation.

FAQs:

  1. What triggers an IRS audit?
    Common triggers include high deductions relative to income or inconsistencies in reported income.
  2. Can I appeal an audit decision?
    Yes, you can appeal through the IRS Office of Appeals.

Conclusion:
An audit doesn’t have to be overwhelming. Polaris Tax & Accounting provides expert audit representation to Plantation residents and businesses. Contact us at our Plantation office for assistance today!