Audits are COMPLICATED. There are a number of audits that can be performed at the local, state, and federal levels, and Julie is here to break them down. Today's episode gives you the 4-1-1 on different kinds of audits, steps to take when you're being audited, and some info on how to avoid a scam audit.
As always, we recommend consulting with a CPA, an EA, or a tax attorney for any legal advice.
Episode Highlights:
- What are some common types of audits?
- Worker Classification Audit - employee v. contractor
- Income Tax Audit - matching 1099s and W2s against your tax forms
- Income Tax Audits are the most common audits
- Unemployment Audit - former employee/contractor has filed for unemployment
- Worker's Compensation Audit - employee/contractor has filed for worker's compensation
- What should you do if you are under an audit?
- Don't let the notices pile up!
- Open all mail you receive from the IRS and read through it carefully
- Most mail from the IRS will include action items and deadlines to complete the action items
- Find appropriate representation
- Contact a CPA, EA, or tax attorney
- The right representation can help guide you and provide best practices
- Find representation with audit experience
- Respond to the IRS correctly and on time
- Your representation can assist you with this
- Appeal any incorrect findings discovered during the audit
Links & Resources:
GreenOak Accounting
Therapy For Your Money Podcast
