Not all audits are the same! If you’ve ever received a dreaded letter from the IRS, we can help.
It is in your best interest to keep your tax returns and supporting documents, as audits normally can go back up to three years (in some cases indefinitely) and can be performed at any time.
The most common audit is a correspondence audit, basically a letter from the IRS for a correction on your return, and potentially some further information for review. This may mean you’ll have to pay some more or (hopefully) get some extra cash.
Field audits are typically for businesses. Auditors will come to your place of business to examine your books and make sure everything is being documented correctly.
An in-office audit occurs when a business or individual will bring their tax information to the IRS directly to prove a deduction or expense.
In general, if you’re organized and maintain good records, none of these audits should be too great a burden. Audits are normally randomly selected, so it is always beneficial to be prepared. Remember that you can count on Paragon Accountants to help you with bookkeeping, tax preparation, and audit information whenever you need it!
