IRS Audits and Collection Problems

Please note that the content in this article is purely informational and should not be taken as professional or legal advice. Tax laws and regulations are subject to change without notice. Consult an experienced accounting team like John Freeman CPA before making any serious financial or legal decisions.

The IRS regularly conducts audits on organizations’ and individuals’ accounts to verify the reported amount of tax is accurate. If you have been selected for an audit, there is no need to panic. An audit does not necessarily suggest a problem, some audits are triggered by random selection and computer screening (i.e. a statistical formula), while others are triggered because of a related examination (e.g. if your return involves issues or transactions with other taxpayers). 

Collections problems occur when an individual or organization does not respond to their tax bill. It is very important to file your taxes on-time or contact the IRS immediately. Some people avoid contacting the IRS because they cannot afford to pay what they owe. However this is not a good strategy, if you don’t make payment arrangements with the IRS, they will begin collections. The IRS often offers payment options, such as monthly installments, to help individuals pay off their tax debt. 

To ensure your accounts and financial information are reported correctly, contact our team of experts during tax preparation to get advice. We can also help you through the audit process and assist with your collection problems. 

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