One of the most complex issues that an individual or small business will experience is a problem with the Internal Revenue Service. It can be incredibly intimidating to receive notice that IRS will conduct an audit, and one may assume that this guarantees a requirement to pay expensive fines or submit to in-depth questioning about personal financial matters. While most people fear getting audited, it may be helpful to know that the chances of this happening are lower than many in Georgia assume.
What triggers an audit?
To determine the likelihood of an audit occurring, it is helpful to understand how the IRS evaluates tax returns and what issues can trigger an audit. Compared to the total number of tax returns filed, the number of actual audits conducted is quite low in comparison. In many cases, an in-depth investigation is never conducted, but instead, the IRS simply asks for additional information.
The IRS may conduct an audit if there are discrepancies in a tax return, problems with deductions or inaccurate information included. One group that may be more likely to experience an audit are those that receive the Earned Income Tax Credit. Careful preparation with the help of a professional can reduce the chance of an audit.
Protecting rights and interests
There are certain things one can do that will reduce the chance of an audit. In the event of this happening, it may be helpful to work with a knowledgeable professional to know how to protect one’s rights and interests at every step. Audits are intimidating, but a Georgia taxpayer has the right to legal counsel and assistance during this process.