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Tax audits are stressful. Kedra can help.
Kedra A Flowers CPA PC has been providing personalized accounting services and professional audit representation for Dallas clients since 1996. We represent you and your business with the IRS examiner so you can continue to focus on your business. If you’re in need of tax relief from an IRS audit in Dallas, contact Kedra A Flowers today.
Let Kedra help you find tax relief from:
What Are Tax Audits?
The Internal Revenue Service, or IRS, can choose to review any taxpayer’s accounts to verify that they have been following the tax laws. A tax audit involves examining your financial information and accounts to ensure that you’re reporting correctly and following the law. If you have been filing correctly, the IRS will simply double-check your numbers and make sure there aren’t any discrepancies.
While a tax audit may seem scary, there’s nothing inherently negative about the process. If you’re telling the whole truth on your tax documents, you don’t need to worry. However, if you have been consciously cheating the system, you should be concerned.
Tax Audit Representation
Audit representation, or audit defense, is a service that allows a tax professional like Kedra A Flowers to stand in on behalf of the taxpayer during an IRS audit. If you choose to hire our team for your audit representation, we will develop a strategy to defend your position, assist in preparing the documents requested by the IRS, and attend meetings on your behalf. Kedra will also handle correspondence.
Whatever your tax situation, Kedra A Flowers CPA PC can help. She has extensive experience helping businesses and self-employed people find tax relief. If a tax audit is taking up valuable time you could be using to run your business, it’s time to schedule a phone consultation with Kedra A Flowers. She will represent you and your business with the IRS examiner so that you can spend time doing what you do best.
Reasons The IRS May Audit You
The IRS conducts tax audits in order to ensure that people are paying what they actually owe in taxes. Sometimes tax audits are random, but primarily, the IRS selects taxpayers because they have reason to believe that there is suspicious activity happening. Here are a few reasons why the IRS may audit you or why you may currently be audited.
Making Math Errors
When you file your taxes there isn’t any room for mistakes. That’s just one of the reasons why you should trust a professional with your taxes. They’ll go over everything with a fine-toothed comb and triple-check your numbers to make sure that you haven’t accidentally left out a zero or forgotten a deduction. If you’ve made an error that an IRS audit uncovers, you will need to pay a fine, whether the error was intentional or not.
Failure to Report Income
Sometimes you may pick up a little income on the side doing odd jobs or independent contract work. You may be tempted to keep these side hustles under wraps, but the IRS already knows about any taxable income you’ve already earned and it’s only a matter of time before you will have an IRS audit.
When claiming deductions, it can be tempting to round up, but if all the numbers on your 1040 form are in simple intervals of $100, that’s a red flag for the IRS. Round to the nearest dollar, not to the tens or hundreds of dollars.
Claiming Too Many Donations
If you’ve donated to a charity, you’re eligible for tax deductions. It seems pretty simple — don’t report false donations/deductions. However, sometimes you may make a donation, claim it, and then not have the paperwork to prove that you made the contribution. More so, if your donations are a significant percentage of your business’s income, then the IRS may flag this as suspicious and conduct an audit.
You’re a High Earner
Individuals and business owners who are earning more end up being audited at higher rates than those who make less. If you’re a high earner, it’s especially important to have your taxes prepared by a professional.
We help a lot of people in Dallas who are self-employed. The IRS tends to audit the tax returns of people who are self-employed at higher rates, so if you claim self-employment income and deductions, it’s especially important to keep a clean paper trail to back up your income and deductions.
What To Do If You Get Audited
Unfortunately, you may end up getting audited at some point or have already been audited. If you find yourself in this situation, take it seriously, but don’t panic. There are professionals like Kedra A Flowers in Dallas that are here to support you. Here are some steps you should take after you receive your audit letter:
Don’t ignore the letter
Ignoring the IRS is always a bad idea. It happens, and we help many clients in Dallas with issues like delinquent tax returns or tax liens & levies. However, if you’ve received a letter announcing that you are going to be audited, write back as soon as possible. If you need time to prepare paperwork and forms, you can request a two-week extension from your IRS agent.
Decide if you need representation
Many IRS audits are relatively simple. For example, the IRS would like to take a look at your 1099 form or see receipts for the deductions you’ve made. If that’s the case, you can simply send in the paperwork and don’t need to get a tax professional involved.
If, on the other hand, you don’t have the paperwork that the IRS is looking for, it’s a good idea to call Kedra A Flowers CPA PC to advise you. More so, if you’ve been asked to meet with an IRS agent, you should bring a tax professional along with you.
You may think that hiring a professional may make you look guilty in the eyes of the IRS, but in fact, your IRS agent will most likely prefer to work with a tax specialist. We will prepare the requested information in a way that’s easy for the agent to read, and communicate with the IRS agent in a professional, dispassionate way.
Negotiate and appeal
After the tax audit is complete, the tax agent will assess any taxes and penalties that you will owe. That assessment can always be appealed, and sometimes a settlement can be reached that will lower the amount you owe. If you are appealing your case, you may need a tax attorney at your side to help settle your case outside of court.
You Don’t Have To Face The IRS Alone
Regardless of the reason why you are being audited, it’s important to have someone at your side to help you navigate dealing with the IRS. Kedra A Flowers CPA PC can represent you through the audit process and help to minimize the financial impact of a tax audit on you and your business.
Kedra A Flowers has been providing personalized professional accounting services, including IRS audit representation, to clients in the Dallas area since 1996. If you’re struggling with tax issues in Dallas, contact her today.
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