Many people get audited by the IRS. Find out how having an enrolled agent on your side during this process can benefit you and can help you navigate any tax penalty.
Taxes are not usually fun for anyone, whether you’re dealing with them as an individual or as part of a business. Getting audited by the IRS is perhaps the only thing less pleasant than doing your taxes in the first place. Find out how securing audit representation from an enrolled agent can help you during this process. Whether you need small business tax help or individual assistance, having audit representation can make a huge difference before, during, and after the audit process.
The job of the IRS is to administer the Internal Revenue Service Code and to make sure all taxpayers understand and meet their tax responsibility. An IRS audit is performed in order to confirm that both of these goals are met. During an IRS audit, the government will go through your tax and financial records with a fine-toothed comb. If your tax records are incomplete or inaccurate in any way, or you underpaid your taxes, the IRS will assess the appropriate penalties.
Having an agent provide audit representation during an audit is an excellent idea for many reasons. First, it ensures that you know what is going on at every step of the audit process. The term “enrolled agent” refers to someone who has passed an intensive three-part exam about individual and business tax returns, or someone who is a former IRS employee. Either way, an enrolled agent is someone who knows the terminology in play during an audit, and who can help you understand what is going on at every point.
An agent will also be able to help you collect and prepare all the necessary information that you need to successfully complete an audit. He or she will be able to double-check to make sure you have all the paperwork and documentation that is required and organize all of it in a way that will be useful for both you and for the IRS.
Your agent can also help you stay informed about what your options are as the audit progresses. If the IRS determines that you do owe back taxes, your tax consultant can help you decide what to do. If your enrolled agent is part of a tax resolution team, he or she can provide tax helpin the form of resolution services. If this is outside of your tax advocate’s scope, he or she will at least be able to point you in the direction of appropriate tax relief so that you can get your finances back on track. Having the knowledge and experience of an agent at your disposal during the audit process can mean the difference between getting slapped with tax liens and other penalties and being able to negotiate an offer in compromise with the IRS.
If you are facing an IRS audit for either a personal or a corporate tax situation, working with an enrolled agent for audit representation is an excellent plan. Your enrolled agent can help you prepare for and navigate the audit, and can assist you with any back tax questions that come up along the way.