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How does CPA-Guard Coverage help me if I receive an audit notice?
By representing you! When you receive an audit notification, contact Peopleworks (914-328-0598). We will verify that you are signed up for CPA-Guard, for the year that the audit targets. If you are signed up, then we take over right at that point. We will ask for your audit notice and will respond to the IRS (and state if involved) on your behalf, and work as your advocate. We relieve the burden of you having to work with the IRS, while also providing our decades of experience.
Are audits really something to worry about?
With CPA-Guard protection you should have a sense of relief, not worry! The IRS may initiate an audit for any number of reasons. Do not assume that if you receive notice of an audit that automatically means you have done something wrong. You know best what your past actions have been, whether responsible or adverse. The IRS may be initiating the audit to clarify issues, not necessarily to lay any blame.
I don't know anyone who has been audited. What are the chances of being audited?
Total audits of all individual taxpayers exceeded 1.2 million for tax year 2005. For tax year 2004, the number of audits for individual taxpayers topped 1,000,000. Tax year 2005 had approximately 20 percent more audits than tax year 2004. Total audits for individual taxpayers for tax year 2004 is an approximate 19% increase over the number of individual audits for tax year 2003. Clearly the IRS is becoming prolific in audits.
For tax year 2005, 132,844,632 individual income tax returns were filed. Therefore the chance of an audit for tax year 2005 was a bit over 9 percent. This is a significant percentage. Audits are real and do happen to individuals across the country.
The data in this section is available directly from the IRS. Visit the IRS web site at www.irs.gov. The 2004 and 2005 tax data books contain the facts and numbers. These are viewable online and can be downloaded as PDF files.
What do I have to do during an audit?
With CPA-Guard Coverage, a CPA works on your behalf with the IRS. There is typically no requirement for you, the taxpayer, to be present at meetings or to answer to communications. That is what the CPA will do. You may be asked to provide receipts or other documents that are required to complete the audit.
Will I end up owing the government money after the audit?
Every audit concerns a unique set of facts and focus of what the IRS is interested in. There is no way to predict ahead of time whether you will owe money or how much that amount might be. An experienced CPA will know how to work with the IRS to make the audit go as smooth as possible. An experienced CPA knows the lingo and industry that the IRS auditors work in, and will be able to facilitate the completion of the audit in the best manner, in your best interest.
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