Tax Audits

Tax audit notifications are usually a source of anxiety for taxpayers. Use of professional representation means incurring an extra cost, but self representation may cost more for the following reasons:

• Time may be spent gathering records that aren't needed.
• Meetings with an auditor will take time away from work, which may not be compensated.
• Disclosing unnecessary information may extend the audit process and increase the calculation of tax due.
• Auditors often prefer to work with professionals, because accountants know the tax laws and know audit procedures. This way the process can stay focused on the most significant issues.
• Familiarity with audit adjustment reports enables a representative to efficiently determine if a tax adjustment is in accordance with the information presented and issues discussed with the auditor.
• Penalty and interest additions to tax can be expediently verified.
• The possibility of penalty abatement can be evaluated from the facts and circumstances of the case.

Once a client signs a Power of Attorney, AccompTax, Inc. takes over all communication with the tax auditor. You will be advised what records are needed, and the company handles all meetings and phone discussions with the tax agency for the years in question. Thorough review and worksheet summation of taxpayer amounts by tax category are hallmarks of AccompTax's audit practice. Auditors appreciate this because it takes them less time to complete an examination. Repeat engagements with certain auditors has resulted in congenial, respectful working relationships. This works far better in arriving at a fair result for clients than an adversarial situation does.

If you have been audited and are unsure about the fairness of your result, an audit reconsideration may be available for you. AccompTax, Inc. can evaluate if too much time has passed for this option to be applicable. If the opportunity is there, the firm can review a taxpayer's audit adjustment report and the documentation from which a questionable decision resulted. After the evaluation, the client can decide whether to proceed or leave the matter closed as it is.