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 Audits
Frequently Asked Questions about aduits and how to survive them.
14 Is there any way to guarantee I will never get audited?

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Requested and Answered by on 13-Jan-2005 10:01 (188 reads)
What are my odds, and can I survive an audit?
Statistically, over 98% of people filing tax returns will not be audited this year. Yet, the threat of an IRS tax audit can cause some anxiety among many people. Yes, you can survive an audit. By knowing what the IRS agent will do, what they will look for and proper preparation, the scales can be tipped in your favor. While there is no way to guarantee you won't be audited, there are things you and your tax preparer can do to help avoid an audit.

If your tax return is selected for examination, our experienced staff can represent you before the IRS. We are well versed in the Revenue Code and tax laws and ensure you are allowed every legal deduction.

We know and understand the audit process and how to deal with IRS examiners and examinations. Choose Strack Associates as your representative and rid yourself of some of the stress and pressure involved in an extensive audit.

We know what the IRS examiner will do, what he will look for and how to prepare for the audit, thereby tipping the scales in your favor.


Requested and Answered by on 13-Jan-2005 10:02 (199 reads)
What documents will the auditor require?
The letter from the IRS will outline the specific items on your tax return that they will examine. In all examinations, the examiner will want to see fourteen months bank statements and canceled checks. The examiner will also want to examine any records, receipts and credit card or loan statements relating to the specific areas being examined.


Requested and Answered by on 13-Jan-2005 10:03 (200 reads)
What is the auditor looking for?
The examiner will first try to find any hidden income. This is a standard action all examiners do regardless of the specific items being examined. We will know how to prepare you for this step.

After an income analysis, the auditor will examine the specific items in question. She will add up your receipts for the item and ensure those specific deductions were not overstated.


Requested and Answered by on 13-Jan-2005 10:04 (173 reads)
What if I didn't keep any of my records or receipts?
The IRS allows reconstruction of your income and expenses based on economic realty (income you reasonably would have made and reasonable expenses you would have had to support yourself and/or family) and on "Industry Standard".

For example, If you are a self-employed plumber they have statistics on the average income and expenses for self employed plumbers and will use those statistics as a guide.


Requested and Answered by on 13-Jan-2005 10:05 (174 reads)
How does the IRS know how much income I received?
Income is reported on tax forms such as W-2 forms (for salaried employees) and 1099 forms (for independent contractors). Interest income you received and mortgage interest you paid is also reported to the IRS, as well as money you received when selling stocks or bonds. The examiner will compare the reported income from these sources with the income reported on your tax return.


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