Can we avoid Internal Revenue Service audits? Although they cannot be prevented or avoided, we can still be prepared for a review.
How could we be prepared for an IRS review? The IRS uses many tactics to select potential contributors who could be audited and we always hope to not be targeted on the IRS selection.
Basically, most of those chosen in this category are selected for the way their tax return was filed. Also, it is very influential who helped you to prepare the tax returns. Remember, if you paid someone to prepare your report, the name of this person will appear in your taxes. So if the IRS has any history of failures in this preparer’s record, your taxes could be revised.
Given the above, here is one of the most recent cases we have received in our office. The purpose of presenting these types of cases is only to show examples of what happens when hiring “professionals” who lack the solid knowledge in the taxes that revolve around a trucker.
One of our clients presented three years of tax reports to us; from 2013, 2014 and 2015. These reports were made by someone who didn’t have the knowledge about the activities truckers perform, much less about the kind of expenses that should be presented.
In short, the IRS sent mail to them informing that the 2013 year was selected for examination and asked them to present all their documents to be reviewed and analyzed at an office of the IRS. Our friend ignored this mail, and after some time and, after not presenting himself to the appointment, the IRS sent him a letter which contained the result of the audit with a debt of $97,000 and with the information that the other two years (2014 and 2015) had been selected to be audited.
Finally, our friend decided to seek professional help and contacted us for his representation before the IRS. He presented his tax reports to us and after reviewing them, we were able to verify that they were indeed full of errors and many anomalies, which showed little knowledge, lack of logic and criteria. Unfortunately, these are the results of hiring “professionals” without sufficient knowledge about the area of transportation.