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AVOID
IRS AUDITS AND IF YOU GET AUDITED... END IT QUICKLY
You
can avoid most IRS audits by doing a couple of things. They are:
- Report
all Income for which you received 1099's or W-2's.
- Avoid
schedule "C".
- Set
up some type of record keeping system.
- Don't
make your return look absurd. If it does, attach an explanation.
When we say: "Don't make your tax return look absurd," we mean
that your entire return must look reasonable. That goes for filing
status, dependents, and expenses in relation to income. My firm
has represented many clients who were audited and in most cases,
we could see WHY just by looking at the returns. There
would be adding errors, deductions on the wrong lines, deductions
on the wrong form, missing forms, and often, messy looking hand
written forms.
Also,
most of the people who get audited are SELF EMPLOYED who have income
and expenses reported on Schedule "C"!
THE
MOST AUDITED FORM EVER KNOWN TO THE IRS IS SCHEDULE "C"!
Many
people report losses on this schedule from their business, which
causes all kinds of RED FLAGS at the IRS.
I
suggest that people who are being audited for the form SCHEDULE
"C" go through the audit and then try not to file that form in the
future. By not filing the form SCHEDULE "C" their chances of being
audited in the future drop dramatically. Call us about a better
business formation.
People
who receive an IRS AUDIT LETTER in the mail asking them to come
to or to call for an appointment must know this EXTRA secret.
YOU
DON'T HAVE TO GO! YOU DON'T EVEN HAVE TO TALK TO THE AUDITOR
As
a matter of fact, going or talking to the auditor yourself is the
worst thing you can do. The taxpayer Bill of Rights allows you to
be represented by a CPA who can answer questions for you and provide
documentation to the IRS. I STRONGLY SUGGEST THIS APPROACH. Many
taxpayers attempt to handle their own audit or hire the person who
prepared the tax return to handle it for them. The reason this usually
does not work out is because most tax return prepares Do Not handle
IRS Audits on a regular basis. The IRS can easily intimidate them,
which usually results in an unfavorable outcome.
The
best way to end an IRS AUDIT with a great out come is TO END IT
THE FIRST MEETING. Whenever my firm represents clients in IRS AUDITS
we actually perform a trial audit in our office before we ever meet
with the IRS. This allows us to know which areas need more documentation
or answers. When we meet with the IRS (WITHOUT OUR CLIENT), we can
quickly answer the auditor's questions, provide documents and get
to the bottom line. We always meet the IRS at their office or at
ours, but NEVER at the client's.
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