Problems Faced In Income Tax Audit

It is sad, but most of the people who have to face an audit by the IRS wind up facing difficulties and outstanding money. This is the most common scenario these days.

To avoid such situations you may seek help from tax handling professionals via https://fariscpa.com/.

Tax Audit

Some of the tax audit problems that are most commonly found come up again and again with time. Do you know them?

If no, then here is your help. Below mentioned are some common income tax problem that you should be aware of as you never know when in future you may have to face them.

  • Receipts that are missing or lost and can show your deductions. This is the most common and in fact the biggest audit problems one can have. If you fail to find these missing receipts, then you can use an affidavit to show your expenditures.

Income Tax Audit

  • The second problem arises when the IRS is saying that they have found that you are earning additional income but you have no idea what they are talking about. In such a situation, you have to search for evidences that will prove that the amount that you have showed is the only earned income you have.
  • I appealed the amount of money that I owe, but the IRS is not approving it. In this case, you should file a Tax Court petition so that the appeals may move to the next level of the process. In any case, you shouldn’t pay the money that you owe.

Tax Problems

  • If you don’t understand the process of the appeal and you have already paid the money that you did not owe, the best solution is either to claim for a refund or hire a CPA for yourself. If you want to hire a reliable CPA that would take care of all your tax problems, you may head towards https://fariscpa.com/chartered-professional-accountant/.
  • The present tax rules give you the permission to claim for a refund within two years of recognizing your mistake.
  • The last problem is when you are being told by the IRS that your business is a hobby; that is why your deductions are not valid. You should search for evidences that will prove it to be a profit motive. I simple words, you have to show the authorities that that you are running a business and not just a pastime.