One of the most dreaded things for a business owner is receiving an audit letter from the Internal Revenue Service (IRS). Such a letter could bring your business to a halt because of confusion, panic, and financial consequences that might follow. This is true if your company has not adhered to tax laws and other essential regulations checked by the IRS. Although such situations rarely happen, it would be best to have IRS representation in the event that you happen to be audited.
What Happens When You’re Audited?
Conducting an audit is usually a tiring and complex process that requires you to have the know-how, time, and resources to ensure the process is up to par. An audit will need you to request corporate records to file income tax returns. The procedure may be confusing and rewuire obscure management from their official responsibilities. Therefore, having IRS representation will relieve you of this hustle and ensure everyday operations continue.
Why is Representation Helpful?
Experts advise companies to avoid facing the IRS alone without professional help. The best path is to hire or work with a certified accountant to manage, process, and address interests through documentation of all inquiries posed by the IRS. In addition, the accounting representation will review and answer questions sent by the IRS to your company. Furthermore, the representative will help you address any issues presented by the IRS to ensure the situation does not worsen.
The representative will perform the following tasks:
- Enter into an agreement with the IRS to be the company’s representative
- Engage with IRS on behalf of the company
- Provide tax records and information on your company’s behalf
- Negotiate with the IRS and ensure that you get a fair hearing and outcome
- Fight for your company on incoming tax issues
Since the constitution permits taxpayers to be represented, you can authorize your representative by signing a Form 2848. This document provides the IRS with the power to deal with your tax professional instead of your company. The IRS has specifications for the credentials of individuals who can represent your business. Individuals that can act as an authorized representative include enrolled agents, tax attorneys and certified public accountant.
If your company faces tax issues that might lead to criminal liability, it is critical to engage a professional service like Master Plan Tax Services in Flower Mount TX before it’s too late. This will ensure necessary steps and interventions are made to guarantee the best outcome. Our professionals will reduce the stress impacted on your management team by streamlining the process. Master Plan Tax Services has a team of certified, skilled, trustworthy, and experienced professionals that will address your tax queries and prepare your company for an IRS audit.