How Do You Prepare for a Tax Audit in Elkins Park, PA?

If you are about to undergo an IRS audit in Elkins Park, PA, it’s important not to panic. The reality is that the IRS tax audit process is routine and isn’t always an indicator of wrongdoing. During this process, the IRS will take a closer look at your tax return to check that you included all your income and only took the eligible deductions and credits. 

Review Your IRS Tax Refund

Be honest with yourself. You may have made genuine mistakes when you filed the first time around. Go through your return and check for issues like miscalculations so that you are prepared for the IRS tax audit process. 

Understand Why You’re Being Audited

Knowledge is power when it comes to an IRS audit. It’s crucial that you understand why you’re being audited so that you can prepare for the rest of the process. 

Reasons You May Face an IRS Audit

Missing Income
You must report all of your income from employers and financial institutions in your IRS tax refund. That includes everything from freelance work to investment earnings. 

Round Numbers
It is extremely rare that your income and deductions will be round numbers. The numbers you provide in your IRS tax refund must be specific, and a common reason why the IRS will flag your return is if it contains perfectly rounded figures. 

Claiming Excessive Charitable Donations
If your charitable donations are a considerable amount of your income, it may trigger a tax audit. Don’t claim donations unless you have the documentation to claim the validity of the contribution.

Deducting Excessive Business Expenses
The IRS may find excessive business expense deductions to be cause for concern. There are only so many expenses that you can claim and they must be closely related to your line of work and not a hobby. 

Prepare Your Documentation for the IRS Tax Audit Process

You are going to need to back up the information on your tax return, so you’re going to need to compile all of the relevant paperwork. 

This may include things like:

• Receipts and invoices
• Bank statements
• Pay stubs
• Business expense records

Make sure that during this process that you receive the tax audit help you need so that you don’t miss anything. 

Work with a Tax Professional for Tax Audit Help

This isn’t the time to navigate the complexities of the tax sphere on your own. Consult with a tax professional, who will be qualified to provide you with the tax audit help that you need. They will help you organize all of the information and documents that the IRS will request from you and guide you through the entire process.

Consult with SD Associates, P.C. in Elkins Park, PA for IRS Tax Audit Process Guidance

Whatever issue you may be facing, SD Associates, P.C. in Elkins Park, PA is here to help. We offer expert tax audit assistance and will ensure that you have everything you need to make the process go more smoothly. Our team will identify the issues and guide you through the next steps.
Request a consultation with our team today and receive the tax audit help that you deserve.