Everyone makes mistakes and that’s even true of the IRS. According to the IRS, more than 650,000 audits were performed in 2021. The IRS relies on a specialized computer program that screens tax returns for accuracy. Those selected for an audit are based on statistical “norms.” Even the smallest of mistakes can result in an audit. Individuals can appeal an IRS decision and a tax professional can help.
The IRS will send a letter indicating there was a problem with the tax return. Read it carefully. Individuals typically experience shock and fear when they receive a letter from the IRS. Don’t panic. Certified public accountants (CPAs), attorneys and enrolled agents can represent an individual during an audit.
Those tax professionals are cognizant of the audit process and can assist in minimizing penalties. Even if individuals prepared their taxes through one of the online companies that offer the service, they can hire a tax professional to represent them in an appeal.
The tax professional will understand the scope of the original audit and under what circumstances taxpayers can request an appeal if they disagree with the decision of the IRS. They’ll also know the proper steps to take, how to request an appeal, and where the request should be sent.
The IRS has very specific rules governing appeals. A written protest is required and must be filed within a predetermined timeframe. It’s easy for individuals to miss a step or respond to the wrong department within the agency without the guidance of a tax professional.
It’s easy to inadvertently become the target of an IRS audit. Appealing the agency’s decision is a complex procedure that individuals should never try to handle on their own. Hire a tax professional with the knowledge and experience to save clients time, money, stress, and ensure the appeal is addressed in a timely and appropriate manner.
At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs. We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!