Audit Information

K & K Financial and Tax Services

Audit Information

If your income tax return has been selected for an audit and you don't know why, it could very possibly be that the computer simply selected your number for audit or potentially your business is part of a compliance test program. Whatever the reason that the IRS has contacted you for an audit, doesn't necessarily mean it's time to panic. Sometimes all the IRS requires are some missing documents, which is the reason for the audit and providing them may stop the audit from going any further. In any case, there are a few different kinds of audits and each occurs at different locations, which are good indicators as to how severe the audit is. Since the IRS can audit you by mail, in their offices, or in your office or home, the location is very telling.

The IRS is very familiar with the laws and regulations affecting you, and unless you’ve handled audit proceedings before, you most likely aren’t. They will take advantage of your inexperience. An audit is akin to a court case, your outcome is generally indicative of your representation. We can help you even the playing field. K & K Financial and Tax Services can defend and validate your audited return. Being audited is stressful. We can help you avoid potential pitfalls and position your case for success. Our tax experts will represent you every step of the way through your audit. We know the latest tax laws; you can rest assured knowing that we pride ourselves on it.

"The hardest thing in the world to understand is the income tax." - Albert Einstein

Audit Information Services

K & K Financial and Tax Services
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Ask Keryl Audit Information

Generally, the IRS selects businesses for audit based on their market segment specialization program. That's generally auditing businesses by industry, so there's certain industries the IRS is actively pursuing, one of which is general construction, general contractor, anything in that industry. Second thing is retail business, and a third one in restaurants. Those are the ones the IRS is looking at right now. They're looking at for income tax audits, they're looking for payroll tax audits, they're looking for a failure to file 1099s. Those tend to be popular right at this time.
The IRS can audit individual, corporate and partnership tax returns for three years from the due date or actual filing date. This three-year statute of limitations can be expanded to six years if you understate income by 25%, or have a $5000 understatement of tax as a result of a foreign bank account. These statute of limitations can be extended by mutual agreement, or by the IRS issuing a Notice of Deficiency within the statute of limitations.
Yes. Often, help is still possible. We will need to see all notices and tax returns to evaluate the case.
Often we can, but we can better answer that once we have received all notices and tax returns involved and we have completed our analysis.