It’s half past twelve in the afternoon and I’m arriving at the Internal Revenue Service offices in a city east of San Diego, California. My audit appointment is at one in the afternoon and it is always good to arrive a little early. As a professional you have to be prepared for the unexpected, although you have to be positive and always have all your documents and arguments ready to present them.
I introduce myself by talking to the IRS agent and let him know that I am already waiting in the main entrance. A few minutes later a woman appears, she is the agent in charge of the case. She told me to enter and once installed with the documents on her desk she starts with the usual questions.
I was hired to represent this audit case after the client had presented himself at the first appointment. The client believed that, with all their receipts and incomes unordered, the Internal Revenue Service agent could review them without any problem. Well, the client made a serious mistake in doing so, because the agent reviewed what she wanted and, without any consideration, presented the report of the audit’s results to our client. He could not believe the result because it exceeded his expectations. The amount of taxes owed was extremely high, reaching almost $60,000.
Continuing with our story, after the usual interview, I went to talk to her and asked her why the result had been so negative in the first report, to which she replied saying that she reviewed what is presented to her in an accountable and orderly manner and that in no way, she would do the accounting work for the taxpayer. This shows that we cannot wait for esteem from the IRS and that before submitting to an audit appointment we must take into account many aspects.
First: You have to gather all the extracts from your bank account and receipts for your business expenses.
Second: Ask for the opinion of a professional, could be a tax attorney, an Enrolled Agent with the IRS (EA), or a Certified Public Accountant (CPA). Any of them can guide you and give you the most accurate suggestions on how to present your audit.
At the end of this case of representation, and with the help of my team of professionals, who helped to put the documents in order, we were able to help our client, reducing his tax debt from originally $60,000 to $12,000. It is very important to consult a professional beforehand than to face this situation by yourself.