Colorado Springs: What Could Cause My Tax Return to Be Audited?

There is nothing more frightening than opening your mailbox and finding a letter that has "Internal Revenue Service" in the return address section of the envelope.  Any number of questions will go through your mind: "What did I do wrong?"; "Did my tax professional make a mistake?"; or "Did I forget to report some income?"

While each of these questions are important to you, the reason for the IRS letter can range a a typo to non-cash contributions to foreign forms.  How can you as a taxpayer be prepared just in case a letter requesting verification of something on the tax return arrives?  Advance preparation and documentation is always the best.  Some of the biggest issues are non-cash contributions. If you are donating an item of significant value, an appraisal is always the best way to ready for the documentation request. You can even include the appraisal with the tax return.

Consistent losses on Schedule C can also trigger an audit.  You really need to keep good documentation of your efforts to make a profit.

I have only briefly covered two of the reasons why your return may be audited.  In all events it is best to always have the documents easily accessible for the positions you are taking on your tax return, just in case.  Prompt and thorough responses to the IRS are always best. 

An Enrolled Agent can represent you before the IRS in these cases to reduce your anxiety and worry of dealing with the IRS on your own.

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA, CTRC

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com

Colorado Springs: How Can I Get Audit Reconsideration? What is an Audit Reconsideration?

 

 

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA, CTRC

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com

Colorado Springs: How Can I Get Audit Reconsideration? What is an Audit Reconsideration?

 

Been audited by the IRS and received a notice with bad news.  Are you stuck with the results?  Or, can you take action to get a result that you feel is more accurate?  Anytime we deal with the IRS the process can be daunting.  But if you disagree with the results of an audit, you have the right to request an audit reconsideration. This process allows taxpayers to present new information or evidence that was not previously considered, potentially leading to a revised audit outcome. 

Here’s a step-by-step guide on how to obtain IRS audit reconsideration:

1. Hire a Tax Professional - An Enrolled Agent (EA) can provide guidance, help you understand eligibility, and ensure your request is thorough and accurate.

2. Gather Documentation: Collect all relevant documents that support your position. This may include receipts, bank statements, or any other evidence that was not available or not considered during the initial audit.

3. Prepare a Written Request: An EA will write a detailed letter on your behalf  to the IRS explaining why you disagree with the audit results. The letter will clearly explain how the included information or evidence impacts the audit findings. 

4. Submit Your Request: Your written request and supporting documentation will be sent via certified mail to the IRS office that conducted the original audit. I recommend keeping copies of everything sent for your records.

5. Follow Up: Patience is important.  It will take several months for the IRS to review your case. It is essential to promptly response to any IRS request for additional information.  

By following these steps, you can effectively request an IRS audit reconsideration and possibly achieve a more favorable outcome.

Cash Tracks Financial of Colorado Springs

Marcelino Dodge, EA, CTRC

525 N Cascade Ave., Suite 200

Colorado Springs, CO 80903

(719) 359-8789

www.cashtracksfinancial.com

success@cashtracksfinancial.com