If you have received a notice from the IRS questioning or disallowing certain deductions, it is important to take action and not ignore it or panic. Simply refer the auditor to your tax professional, and get organized. Failure to respond appropriately can result in the IRS changing your returns, assessing a new liability, and adding penalties and interest. Furthermore, ignoring the notice will waive your future rights to dispute the matter.

It is important to note that receiving a letter stating that your tax return has been selected for examination does not necessarily mean that you are being accused of lying or cheating on your tax return. The purpose of the IRS audit process is to ensure tax compliance and collect the appropriate revenue for the government. When you receive notice of an examination, it is the right time to seek professional IRS representation.

The IRS has established "normal" percentages for deductions based on income levels. If your deductions vary significantly from these norms, it increases the likelihood of an error on your return, and therefore, an audit. In recent years, the IRS audit rates have increased dramatically for all types of taxpayers, particularly for high-income taxpayers.

Since tax laws are subject to interpretation and are not always straightforward, there is no such thing as a perfect tax return. IRS audit agents may attempt to expand the scope of the audit beyond the tax return in question. JS Tax Resolution Group representatives can help limit the scope of the audit and provide organized and timely information to the auditor.

It is crucial to provide your representative with the information requested by the auditor in an organized and timely manner. This limits the amount of information exposed to IRS scrutiny and demonstrates your preparation and compliance. Organized records may also make the auditor more likely to limit the scope of the audit.

JS Tax Resolution Group has extensive experience representing individuals, professionals, and business owners in IRS and State audits. It is essential to have an experienced representative, such as an Attorney, CPA, or Enrolled Agent, on your side when facing the IRS to resolve your tax liability.