An IRS audit is not a pleasant thing to go through because it is cumbersome, time consuming, and in many cases, expensive. It is a good thing to hire a New Jersey tax attorney if you are being audited. It is best to collect all financial documents for the year before and after the year of audit, and for that year as well. You must also collect all documentation that can be used to show legitimate tax deductions or tax credit that you may have claimed when you filed a return.
Discuss the whole thing with your New Jersey tax attorney and make sure that you pay close attention to all expenses that are listed under Schedule E, which covers investment property, and Schedule C, which covers small businesses, and also Schedule A, in case you did not itemize your deductions. Make sure to discuss everything in detail with a New Jersey tax attorney because he or she can help you find all the right supporting documents required during the IRS audit.
Another thing a New Jersey tax attorney can do for you is to double check all your returns and supporting documents and make sure you did not omit anything. Tax payers frequently discover that they have omitted the interest or dividend payments from their small savings accounts or brokerages. It can also happen that tax payers entirely forget to declare these items because the investment company did not send them the needed documents.
Taxpayers are also seldom aware of the real role of the IRS examiner which is actually to assess the maximum amount of tax that an person is meant to pay. This results in the tax payer being completely surprised when the results of the audit come back a month later if a New Jersey tax attorney is not consulted first.