Tax Audit

An IRS Audit is a review of an organizations or individuals accounts and financial information. Another way to look at an audit is as a discussion and review of the individuals or business financial situation to ensure taxpayers are complying with the tax laws and reporting a substantially correct amount of tax.

Selection for an audit does not always suggest there’s a problem. The IRS uses several different methods:

  • Random selection and computer screening – sometimes returns are selected based solely on a statistical formula. IRS compares your tax return against “norms” for similar returns.
  • Related examinations – IRS may select your returns when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for audit.

The IRS will provide you with a written request for the specific documents they want to see.

The IRS accepts some electronic records that are produced by tax software. The IRS may request those in lieu of or in addition to other types of records.

The law requires you to keep all records you used to prepare your tax return – for at least three years from the date the tax return was filed.

A&F Financial team will work with you gathering all documents necessary in order to fulfill any request that you may receive.

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