Due to IRS budget cuts, it may seem logical for Georgia residents to believe that audit rates are lower. In 2011, those who made more than $1 million had a one in eight chance of being audited. Today, someone who makes more than $1 million has a one in 13 chance of being audited. However, the audits that are conducted today are being conducted at an expedited rate of speed.
Georgia business owners may be interested in some information about different types of strategies they might employ to be successful during a tax audit. Due to the importance of doing well during these audits, it is crucial that the taxpayer do everything they can to avoid further penalties.
Owners of small businesses in Georgia may be interested in some information on what the Internal Revenue Service is trying to find when conducting a business tax audit. Depending on what its analysis shows, there could be serious issues for the business owner.
The IRS elects to audit tax returns based on a number of factors. Selection for audit is not arbitrary; rather the return is first evaluated in a lengthy and thorough process. Then a final determination is made as to whether or not the return will go through the full audit process. Individual states, including Georgia, follow a similar process.
The prospect of an audit conducted by the Internal Revenue Services can be an unnerving prospect from many Georgia residents. Sometimes, such actions may be conducted in by an official review of a taxpayer's document, and in other cases, the service might seek to conduct the audit in person. Those who have received notice that the IRS plans to review their documents might benefit from contacting our firm.
For Georgia taxpayers, an IRS audit is often one of their greatest fears, after paying the taxes themselves. There are some tips that can hopefully help reduce the chance of an audit and the problems that come with it.