IRS Audit on Maui – 5 Tips to Prepare for a Tax Audit
No business owner wants to be called in for an IRS audit on Maui. But owning a business and earning a serious income comes with an increased chance of getting a letter from the government.
Most people panic at the very thought of an audit. Don’t worry though, receiving an envelope from the Internal Revenue Service might not be as bad as you think. In some cases, the IRS may simply ask you to clarify or correct an error that causes a discrepancy on your return.
In other cases though, a notice from the government may indeed state you’re being called in for an audit.
Having someone by your side to represent your best interest is one of the top reasons why you should hire a tax professional when the time comes to filing your return. Here’s what else you should do in case you’re being called in for an IRS audit on Maui.
Keep your records in order in case you get called in for an IRS audit on Maui
Keeping good records all year round should be a habit for business owners everywhere. You should either develop a personal filing system or hire a bookkeeper to assist with the bookkeeping tasks for your business.
Gather all your supporting documentation
Saying you’ve “lost” the supporting documentation for the tax year in question won’t help. Instead, you should go back to that year and gather your records as accurately as you can. For instance, before your IRS audit on Maui, call your doctor’s office or hospital if you have claimed any medical expenses. Do the same to gather all the other necessary information before attending your audit.
Never call the IRS or attend the audit on your own if you can book the services of a tax representative
When it comes to tax audits on Maui, you need to realize that the auditor isn’t your friend. Therefore, it’s always best to book the services of a professional. A tax representative knows how to behave and what to say during an audit. If you decide to attend the audit by yourself, you may reveal information that could potentially cause more problems instead of solving them.
Contact James & Associates today to learn more about our IRS representation services. Our team of licensed tax professionals knows how to deal with the IRS and represent your best interest.
Know that an IRS audit on Maui implicitly implies you’ve made a mistake on your return
In some cases, an audit may prove that the IRS owes you a certain amount of money instead of you owing taxes to the government. However, the outcome of an IRS audit on Maui is often unpredictable.
If you’re being called in for a tax audit on Maui, remember never to volunteer any extra information and consult with a tax professional on the best way to behave during an audit.
Always take a tax audit on Maui seriously
Last but definitely not least, make sure to take a tax audit seriously. An IRS audit on Maui is a serious matter so make sure you show up on time for your tax audit and behave professionally.