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Importance of Tax Audit Representation
Another name for tax audit representation is audit defense. Tax audit representation can be referred to as service whereby taxi stands in for a taxpayer during state income tax audit. During a state income audit process, there is the representative that is used to represent the taxpayers. These representatives include attorneys public accountants and enrolled agents. These representatives prepare all the documents that are required in the internal revenue service and they also attend meetings on behalf of the taxpayer. The Audit representative should also have a strategy that they will use to defend you from the internal revenue service. In this case, they act as lawyers Therefore these representatives can be said to be intermediaries between the state and the taxpayer. Therefore when choosing a tax audit representative you need to choose the one that you trust because they will defend your position. Also one should choose a tax audit representative that is skilled and knowledgeable. It is important to know that tax audit representation does not mean that a taxpayer has done anything wrong.
Some of the importance of tax audit representation is laid out below.
A tax audit representative helps a taxpayer to save money. Since tax audit representatives are knowledgeable and skilled about taxes in the country, therefore, they can to know the amount of money that is payable to the government that is the tax. Therefore a taxpayer does not pay more Dan is required to the government or state.
Through tax audit representation taxpayers’ rights. The representatives such as attorneys know the rights of the taxpayers, therefore, they protect the taxpayers from being exploited by the state. This is because common taxpayers do not understand or may not know some of the rights that they have that they could use for their advantage.
Another importance of tax audit representation is that they eliminate the amount of proposed debt. The amount of proposed debt could be as a result of errors in Math errors, round numbers, and many losses reported. Since the tax audit representative, not the way around they could eliminate this amount of proposed debt if not the tax audit representative can they go negotiate the amount of proposed debt.
Another importance of tax audit representation is that they can present an offer in compromise. Offer in compromise is a program whereby the taxpayer who is not able to pay their due are enrolled. Therefore if a taxpayer is an ability or has a hardship in paying taxis to the internal revenue service they can be instituted in this program. Therefore if the tax audit representative notices this they can offer the taxpayer to pay less of the amount that they were supposed to pay. This offer can only apply to taxpayers who are in certain circumstances such as they do not have an income, they don’t have assets, etc
It is therefore important for a person to two sync an audit representative once they receive a letter from the internal revenue service so that they can protect themselves from the internal revenue service agents.