Received an Audit Letter from the IRS or State of Michigan?
If you have received an audit letter from either the State of Michigan or the Internal Revenue Service, we can help! The IRS and/or the State of Michigan can choose to review your income tax return for accuracy if there is any reason they believe some or all of your return is incorrect. This is the dreaded audit.
Hearing that you’re being audited causes fear and panic, but it doesn’t necessarily mean you’re in trouble. If you haven’t broken any laws, it could just mean that something was incorrectly listed on your tax return. Maybe you listed your tips under rental income? Maybe you didn’t claim any interest on your bank accounts?
In any event, it means you may need audit representation from a firm with experience dealing with IRS, State, or City tax authorities. That’s where we come in. We can help thoroughly review and defend your case, giving you peace of mind during the process.
Why was I audited?
People fear a tax audit and often ask why it happens. The odds of an audit from the IRS goes up dramatically if large, unusual, and suspicious items appear on your tax return. It also happens when tax authorities feel that either you or your tax preparer made mistakes on your return. The most common reason someone is audited comes down to the IRS searching for extra revenue by seeking out individuals and companies who underreport, or even fail to report. This causes their overall tax owed to be less than it should be. The same goes for inflating deductions to lower your tax burden. Don’t do it! If you’ve hid income or overstated deductions, don’t be surprised if you’re audited.
What should I expect during the audit process?
At People’s Tax Services, we will take the time to understand your background and story. In order to do so, we will need you to bring all documents pertaining to your tax audit case, including any notices sent by the IRS or other tax entity, and accurate and complete copy of the tax return in question, as well as any supporting documentation.
Supporting documents:
- 1099s
- W2s
- receipts and other expense reports
- mortgage interest statements
- property tax statements
- self-employment documents (income and expenses)
- foreign income information
- any other documents relevant and relating to the year(s) in question
It is extremely important that you share all information with us relating to the year(s) you are being audited for. This is the only way to achieve the most favorable result. You have rights during the audit process. Without the right representation during a tax audit, many taxpayers answer questions that they aren’t legally required to.
We will thoroughly explain the audit and our actions to you throughout the process. After our initial analysis, we will identify probable outcomes and recommend a strategy to proceed with. During the audit process, please share any additional notices you receive, as they may have important dates, deadlines, or instructions.
Finally, we recommend that you stop dealing directly with the IRS yourself and allow us to represent you. Please be aware that the audit process is not a quick one. Don’t expect it to be over and done in a few weeks. Dealing with certain tax departments at the federal, state, or local levels can take months.