No one in New York City (or elsewhere) enjoys finding out that his or her personal or business tax return is the subject of an IRS audit. Just the same, if it happens to you take a deep breath, hold your head up and realize that this procedure has been undergone by millions of individuals and a great many businesses throughout the years. Today’s audits are usually based on an examiner’s questions about a particular section of a tax return, which often involves a simple error on the preparer’s part.
To put it simply, the best way to deal with an IRS audit services in NYC is with the help of a NYC certified public accountant (CPA). The best scenario is to have engaged one to do the tax return in the first place. Many mistakes can be avoided in this way. If the IRS has questions anyway, the CPA can explain how the return was prepared and what documentation it was based on. If the CPA you hire did not prepare the return, he or she can at least double-check it and help you deal with the audit procedure itself based on prior experience.
When you hire a CPA firm before your next tax return is due, you can have the firm do its own audit. However, this audit will be of you, your business, and your book and record keeping methods and habits. Remember, your CPA goes back to school every year to learn about the latest changes to the tax code. Most of the rest of us do not. In addition, these firms know what the IRS is looking for that will cause an audit to start, and how to stay away from sending this sort of signal.
In the event that you do end up owing the government money as the result of an IRS Audit NYC, it should be because of clerical error or incompetence. If you actually tried to defraud the IRS, here’s hoping it was a minor offense and you learned your lesson. Familiarize yourself with the difference between tax evasion (which is illegal) and tax avoidance (which is both legal and moral, according to the courts.) In closing, don’t try to go it alone; hire a CPA. It’s a tax deductible expense.
