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Tax Audit Services

Stay Compliant, Stay Confident

Significance of professional audit representation?

Expert Navigation
Our experienced audit representative helps you navigate complex tax regulations and checks if all necessary documentation is in order.
Stress Reliever
On handling the audit details, they let you rest back and allow you to focus on your business.
Proactive Communication
Seamless conversations done to manage all interactions with auditors, reducing misunderstandings and ensuring your side of the story is clearly presented.
significance of professional audit representation

Penalties & Interests

The penalties and interest described below are specific to the U.S. tax system, particularly in relation to IRS tax audits and compliance.

Failure-to-File Penalty
Failure-to-File Penalty

If you don’t file your tax return by the deadline, the IRS imposes a penalty, usually 5% of the unpaid taxes .

Failure-to-Pay Penalty
Failure-to-Pay Penalty

A penalty of 0.5% of the unpaid taxes is charged for each month the tax remains unpaid, up to 25%

Accuracy-Related Penalty

This penalty is 20% of the underpaid tax due to negligence, substantial understatement of income.

fraud penalty
Fraud Penalty

If underpayment is due to fraud, the penalty can be as high as 75% of the underpaid tax.

Interest on Unpaid Taxes
Interest on Unpaid Taxes

The IRS charges interest on any unpaid taxes from the due date of the return until the date of payment.

Underpayment of Estimated Tax Penalty

This penalty is calculated similarly to interest on unpaid taxes.

Types of tax audits

Understanding the different types of tax audits can help you prepare more effectively. Correspondence audits are usually less intrusive, handled via mail and focused on minor discrepancies.

  • Correspondence Audit : Conducted through mail for minor issues, requiring additional documentation to be sent.
  • Office Audit : Takes place at the IRS or tax authority office, focusing on specific aspects of your tax return.
  • Field Audit : A thorough examination at your place of business or home, involving detailed scrutiny of financial records.

Preparation

Gather and review all relevant tax documents and records.

Understand tax laws

Know the applicable tax regulations and compliance requirements.

Identify risks

Spot potential compliance issues and review past audit findings.

Documentation

Keep organized and accessible records of all transactions and tax filings.

Undertake the process

Cooperate with the auditor, provide requested information, and answer questions.

Resolution

Review audit findings, make necessary corrections, and implement changes to avoid future issues.

Six Common Audit Issues

Errors or misclassifications in financial statements.

Incorrect timing or method of recognizing revenue.

Insufficient controls leading to fraud or errors.

 

Failing to adhere to laws, regulations, or internal policies.

Lack of proper records or support for transactions.

Poor tracking leading to loss or misallocation.

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