Receiving notice of a tax audit is always stressful in Brooklyn NY. But for tax audits Brooklyn business owners and individuals know that Tax Town of Brooklyn is by their side throughout the process. As a tax service Brooklyn trusts, we offer guidance at each stage, and will interact with the Internal Revenue Service on your behalf. When it comes to your finances Brooklyn residents know that our team is there for all your tax needs.
It helps to understand what an audit is. An audit does not mean there’s a problem, but is part of a routine process the IRS takes to review returns that are either randomly selected or outside of other norms for similar taxpayers.
For tax audits, Brooklyn residents and business owners will be notified by mail. Some audits are conducted exclusively by mail and some in person. In either case, a tax service Brooklyn relies on is essential to defend your returns and explain any irregularities the IRS identified.
When reviewing your finances Brooklyn tax professionals will assess what the IRS is asking for and help you gather the necessary documentation. This data may include bank records, receipts, previous-year returns, or other paperwork you or financial institutions may have.
In general, the IRS can audit returns within the past three years. If it uncovers a significant issue, it can add additional years to the audit scope, but usually not more than six years.
The audit can be conducted in person at your place of business, home, an IRS office, or the office of your Brooklyn NY tax preparer. The IRS may also simply request for documents to be submitted via mail.
The audit process can be extensive and you may need additional time to gather documents or meet with your tax professional. There is no set time duration for an audit process. Mail audits usually allow for an automatic 30-day extension. In-person audit extensions are usually handled by you or your tax preparer in consultation with the IRS.
In 2014, the IRS announced a bill of rights that includes 10 basic rights all taxpayers have:
The IRS has the right to set penalties if taxpayers do not file their returns or pay their taxes. Penalties can also be set for making errors on a tax return or for committing fraud. These penalties can include monetary penalties, seizure of real assets or prison time.
To ensure you receive the best defense for your audit, turn to Tax Town of Brooklyn. We provide comprehensive tax audit defense services, in addition to tax preparation, corporate tax, payroll, and estate tax services.