Tax Tip of the Week
October 8, 2007

Starting this month, the Internal Revenue Service will begin another round of random examinations of income tax returns. This latest series of audits was prompted by continuing concern over the gap between what the IRS thinks taxpayers owe and actual tax collections, as well as a need for updated statistics for audit selection purposes.

If your return is selected for examination, here’s what to do before the audit begins.

• Coordinate scheduling. For in-person meetings with an examiner, the notice you receive will state the time and place of the audit.

  Need more time to prepare? Let us assist you with getting the appointment changed to a more convenient date or location.

• Gather records.The notice of examination will also indicate the records you’ll be expected to present. Because one purpose of these audits is tax research, the amount of paperwork requested may be substantial, so you’ll want to start organizing your documentation promptly. That way you’ll have time to locate missing forms and receipts, or to request duplicates if necessary.
• Assess your return. Review your return and records to determine where potential questions may arise. For instance, you might have claimed a larger-than-usual medical deduction due to a serious illness. Since it’s likely you’ll be asked about the deduction, be prepared by having your explanation and evidence ready.

Please contact us as soon as the IRS notifies you of a pending examination. In addition to providing advice and assistance, we can represent you during the audit and help you obtain the best possible outcome.

Questions for our Financial Expert?
E-Mail us at: finance@ClevelandSeniors.Com