Imagine you've just completed your taxes for the year, and you're feeling a sense of relief. But then, you receive a notice from the IRS informing you that your return is being audited. Panic sets in, and you wonder if your tax preparer will know about this audit. In this blog post, we'll explore the relationship between tax preparers and audits, and what you can expect if you find yourself in this situation.
Understanding the audit process and how it involves your tax preparer is crucial for any freelancer. This knowledge will help you navigate the situation with confidence and ensure that you're well-prepared for any potential audits in the future.
By the end of this post, you'll have a clear understanding of whether your tax preparer will know if you get audited, what their role is during the audit, and how to handle the situation effectively.
An audit, or "examination," is a process where the IRS reviews a taxpayer's return to ensure that all the information reported is accurate and complies with tax laws. If the IRS decides to audit your return, they will send you a written notification either to your last known address or to your tax preparer.
Your tax preparer may be involved in the audit process if they prepared your return, and you authorized them to represent you before the IRS. In this case, they will receive a copy of the audit notice and may assist you in gathering the necessary documentation and responding to the IRS's inquiries.
If you receive an audit notice, it's essential to remain calm and take the following steps:
While there's no foolproof way to avoid an audit, you can take some steps to minimize the risk:
In conclusion, your tax preparer will likely know if you get audited, especially if they are authorized to represent you before the IRS. By understanding the audit process and working closely with your tax preparer, you can navigate the situation with confidence and minimize any potential issues.
With this knowledge in hand, you can face any audit situation with confidence and ensure that you're well-prepared for the future.