Although most people fear a tax audit, this investigative process by the IRS occurs relatively rarely. If you have received a letter from the IRS, try not to panic. With calm assessment and professional assistance, your situation can be handled efficiently.
Letters from the IRS do not always mean what you think.
- The adjustment letter. This is not a letter indicating
an audit, but a letter that indicates there has been a change to either
your refund or the amount owed in taxes. If the IRS notices a mistake
in numbers on your form and sends you an adjustment letter, this also
does not indicate that you should fear an impending audit due to the
- The correspondence audit letter. As it sounds, the
correspondence audit is an audit; one that can most likely be handled
without a face to face meeting. This letter will request that you
provide information to clear up a misunderstanding of your tax return.
For instance, clarification may be sought if the income on your W-2 is
different than that reported by your employer.
- The examination audit letter. The examination audit is
the type most feared. Fortunately, it is also the least common type of
correspondence received by the IRS. If you receive an examination audit
letter, an experienced professional at Whyte & Associates can help
you make sense of the nature of your audit and the information you are
being asked to provide. Part of the examination audit is a face to face
meeting with your IRS representative. The letter you receive will
discuss the scheduling process and possibly the preferred location of
the meeting. A meeting will need to be scheduled within a certain time
The best way to handle correspondence from the IRS is to remain calm and face the issue of an audit head-on. Ignoring tax problems will not make them go away. In many situations, the issue at hand is minor and can be handled quickly. In any case, professional assistance from an experienced Enrolled Tax Agent can ease your mind and get you back on track. Your tax counselor at Whyte & Associates can help you gather the necessary documentation and can also sit with you in your audit meeting.
You are not alone in your tax concerns. Call our Rancho Cucamonga office at (909) 575-0080 to obtain face to face support.