IRS tax disputes are feared. Everyone tries hard to avoid situations that conflict with the law due to failure to pay taxes. It is always a good idea to clear a business’ accounts and file taxes without having problems to do with skipped taxes or other related issues. No one ever wants to be placed under the scrutiny of an audit; it is very tiring having to go through all the rigorous processes that a tax audit entails. One spends so much time resolving audit issues and sometimes, heavy fines and penalties are levied. To avoid issues with the IRS, it is important to file tax returns correctly and promptly.
There are some tax returns that must be audited though. Tax audits have been on a steady decline and this could be attributed to the change in taxpayers’ behaviors as far as filing of tax returns is concerned. In the old system, a taxpayer had to bring all the records showing the taxes that had been paid. The auditor would then peruse through all the records in order to know how much had been paid and if there were any outstanding amounts. Today, things are totally different. A large company can no longer be subjected to such a process since it is time consuming and usually doesn’t come up with satisfactory answers. If one has to go through a federal tax audit, it is always good to comply and let the law take its course. Nonetheless, everyone agrees that it not the best experience; it is tiring and costly. Here are some things that one can do to make the process easier and faster:
- The IRS queries should be responded to in time. When one is asked to submit a document, it has to be done promptly. Delays can lead to fines and penalties. Most submissions have a deadline of up to 30 days thus, providing the taxpayer with adequate time to produce the document. If a person feels that he/she cannot meet this deadline, it is important to call the IRS and request for an extension, depending on the workload at hand.
- One should attach the necessary documents. The documents have to be in line with the demands for the audit. Transaction receipts are very important and one should have them ready for submission when required. Receipts make audit processes easy for both parties though there are people who prefer to use different types of proofs.
One has to organize well in order to face the audit panel. Having right documents in places makes one credible and reduces the need to “talk too much.” It pays off when one is coherent and confident before the audit panel.