You must be well aware of the term audit; it is the review of your income tax returns in order to determine their accuracy and transparency.
Let us discuss the types of tax audits and their details in order to clarify that all income tax audits are not a nightmare.
Types of Income Tax audits
- Field Audit; it usually occurs at your place of business or at your representative’s office. IRS will request all the documents and information to be provided to them at the office. It is advised that you maintain your income tax records neatly and in order.
- Office Audit; Unlike field audit, the office audit is held at the IRS office specified in the letter you received. If you are called for a office audit, your representative or you are suppose to attend a meeting where you’ll need to provide the specific information and documents that are mentioned in the IRS’ letter. It is advised that don’t take along too much information, only take those documents which are requested.
- Correspondence Audit; It is a pain free simple audit. It requires you to provide your signature on tax formthat you forgot to endorse, or sending in a tax form that you neglected to include.
When you get a call for an audit, it is important that you take help from a professional. You can call professionals at Tax Help MD for assistance. They have the expertise and knowledge to prevent you from getting penalized.