Taxes are one of the most complicated and frustrating parts of each new year. Even the smallest mistake can lead to harsh penalties, such as a tax audit. But what exactly is a tax audit? Simply put, a tax audit is best defined as the state government or the IRS deciding to carry out an investigation on a taxpayer’s returns and their income. This usually happens as a result of errors, possible fraud or similar problems.
Anyone can be audited. The IRS is peculiar about the process in that they do it not only in cases of fraud but also place audits on taxpayers at random. Independent contractors (especially those with numerous deductions and expenses) and people with higher tax brackets are more susceptible to being audited than other citizens.
The IRS may conduct an income tax audit based on the following issues:
Unfortunately, all of these situations can result in massive fines. That’s why, if you’ve received notice of a tax audit, it’s important to seek out professional assistance as soon as possible. Proving you didn’t commit fraud or make a mistake on your taxes can be extremely complicated, but a tax expert can make it easier to reach a better tax audit solution.
The Rocket Tax Relief team is fully staffed with seasoned tax professionals who can assist you in finding tax audit relief. Each member of our staff is well-versed in tax laws. For more information regarding our tax relief services, feel free to give us a call at 800-542-4718 or complete our online form. We provide 15-minute tax consultations at no cost.