Income Tax Audit Services

One of the hardest things to deal with as an individual or a business owner is an IRS and/or an Income Tax Audit. Audits can feel like they come out of nowhere. The burden of providing evidence and defending yourself can feel long and drawn out.  

FACT Professional Inc has the knowledge and experience to help you navigate income tax audit issues.  

I received a notice from the IRS – am I getting Audited? 

The IRS sends various notices to taxpayers for a variety of situations – a recalculation on your return, a penalty on delinquent payments, a change in your mailing address, etc.  

However, if you are receiving a notice from the Internal Revenue Service (IRS) or any state government it specifies that your return has been picked up for examination you are now going through an income tax audit.  

What is an Income Tax Audit? 

An income tax audit is an examination of your tax return that was received and processed by the government. If you are a business owner and have a tax audit on other areas of your business such as sales tax and payroll tax our firm can service, you as well.  

Why am I getting Audited? 

An income tax audit occurs when aspects of your income or expenses are outliers for your industry or income. The specific process typically used is called a discriminant function test. This test reviews and compares average deductions taken over many returns and determines if your deductions are higher than the average number of deductions.  

Audit selection processes are generally automated these days. Therefore, even if your expense is justified and reasonable you may be selected for an income tax audit. 

How long will the audit take? 

A tax audit can take up to 6 months to complete, however, an audit may take longer based on the availability of IRS resources and the delivery of information we deliver to them. The more organized your records are the smoother the process is expected to proceed.  

If I have FACT Professional, Inc. handle my audit will my tax liability go away? 

Our firm will do the best we can to mitigate your reduce your liability. However, the burden of proof will still fall on the tax preparer. Without evidence of deductions, it can be very challenging to prove legitimate expenses. It is critical to keep thorough documentation of expenses or deductions for at least 5 years.  

What steps should I take when I receive an income tax audit notice? 

The moment you receive an income tax notice calls our firm. We will evaluate the nature of the audit, and the scope of work, and contact the IRS agent on your behalf. Once you sign up with our firm, we will be the intermediary between the government agent and yourself.