An IRS audit is basically an examination or a review of an individual’s accounts or a business’s accounts. The information reviewed typically includes bank statements, tax returns, and financial information. These audits are completed to ensure that individuals and businesses are properly filing and paying taxes according to the IRS and rules set forth. If you find yourself in the middle of an IRS audit, don’t hesitate any longer and call the experts at Leading Tax Group. We are committed to working with individuals and businesses just like yours to ensure that the audit goes as smoothly as possible.
Why an IRS Audit? If you have been notified that you have been selected for an IRS audit, try not to panic. Yes, individuals who evade taxes do get audited, but just because you were selected does not mean that you did anything wrong.
The IRS has several methods of determining who is the victim of an IRS audit. The first method is through a computer screening and also random selection. Often times, tax returns are chosen based on a formula and when the return meets the set forth criteria, it is selected.
Another method the IRS uses is called related examinations. What this means is that your return may be chosen because someone you did business with was selected for an examination or because one of your investors was selected for an audit.