Services and representation for all types of tax audits in Rancho Cucamonga

Just the word “audit” can strike fear in the hearts of business executives and individuals alike. Do not worry, you do not have to face it alone. The top-notch professionals at Whyte & Associates, Inc. offer many types of audit services in Rancho Cucamonga, CA. We can help you understand why you are being audited, what to expect, and how to prepare.

Types of tax audits

There are several types of tax audits, with differing processes. In each case, the goal is to either verify that information on your tax returns is accurate or adjust if inaccuracies are confirmed.

  • Correspondence audit – Also known as a mail audit, this is the simplest and least concerning type. It does not involve a personal meeting with an IRS agent. A common scenario would be a request for documentation to verify unusual deductions or changes in income. This type of audit is often triggered by apparent errors in tax filings. If you can provide the requested documents, and they verify information on your return, no further action is likely. Otherwise, adjustments will be made, which may mean that you owe the IRS.
  • Office audit – This is a bit more serious than a correspondence audit, and it involves meeting with an IRS agent. The most common scenario is a request to review a business’s books, which is not easily conducted via mail. Again, if your books are meticulously kept and your tax returns have been accurate, there should be no problem. However, it is imperative that your financial records be complete and error-free.
  • Field audit – This audit takes place at your business or home and is the most likely to have serious consequences. It involves extensive review of tax returns, and verification of information provided. Sometimes a field audit is ordered because it is the only feasible means of verification, such as deductions related to a home office or business equipment. In other cases, IRS may suspect fraud or major errors. Because field audits are costly, IRS rarely conducts them unless the potential discrepancy is a high dollar amount, meaning they can result in a large change to your tax bill.

How we can help

No matter what type of tax audit you are faced with or what triggered it, the key to a good outcome is preparation. You need to have your books in order, be able to provide documents requested, explain discrepancies, and comply with whatever verifications the auditor requests. If there was misinformation on your return, you need a plan to pay any additional taxes owed.

We will explain what to expect, help you prepare, and if necessary, represent you in personal interactions with the auditor. Do not delay – call us at (909) 575-0080 ASAP if you are being audited.

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