How Is an Audit Inquiry Letter Handled by the Auditor?

Save
Next Video:
S-Corporation Tax Write-Offs for Losses....5

IRS audit letters have been on the increase dramatically over the past few years. Find out how an audit inquiry letter is handled by the auditor with help from a CPA and partner at Safe Harbor, LLP in this free video clip.

Part of the Video Series: Taxes & Accounting
Promoted By Zergnet

Comments

Video Transcript

Hi, I'm Chun Wong, a CPA and partner at Safe Harbor, LLP, a tax and audit firm based in San Francisco, California. Today's topic is how to handle an audit inquiry letter by an auditor or CPA. IRS audit letters have been on the increase dramatically over the past few years. Receiving such a letter is not a reason for panic. Often times these letters can be handled with a simple response back to the requesting authority. Here at Safe Harbor we have a five step program for this process. Our first step is we always have the client read the letter slowly and carefully. The language can often be long and seem impersonal but within that long letter the IRS may simply want an additional 1099 interest from your bank. Our second piece of advice in our program is to consult your tax adviser when you receive such a notice. Third, do your own research because you or your tax professional know your return the best. Fourth, write out a well reasoned letter explaining and providing the information that's requested by the IRS. Finally, follow up and get a closing letter to ensure that everything has gone through and your account is cleared. If you have a good tax adviser, have good records, are prompt in responding, oftentimes these letters can be handled very quickly and with very good results.

Featured

Related Searches

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!