Tax Accounting and Audit
Stay Complaint , Stay Confident
Fraud Penalty
If underpayment is due to fraud, the penalty can be as high as 75% of the underpaid tax.
Interest On unpaid Taxes
The IRS charges interest on any unpaid taxes from the due date of the return until the date of payment.
Underpayment of estimated tax Penalty
Tax Penalty
This penalty is calculated similarly to interest on unpaid taxes.
Tax Accounting and Audit
Tax accounting
Helps individuals and businesses plan, file, and minimize their taxes. Tax accountants review financial documents to ensure accuracy and compliance with tax laws. They also help clients maximize their tax breaks and returns.
Audit
Verifies the accuracy and compliance of financial statements prepared by accountants. Auditors work with organizations after they've made tax decisions, looking for errors or problems. They communicate their findings to the client
Penalties and Intrests
Failure-to-File Penalty
If you don't file your tax return by the deadline, the IRS imposes a penalty, usually 5% of the unpaid taxes.
Failure to pay penalty
Failure-to-Pay Penalty
A penalty of 0.5% of the unpaid taxés is charged for each month the tax remains unpaid, up to 25%
Accuracy-Related Penalty
This penalty is 20% of the underpaid tax due to negligence, substantial understatement of income.
Documentation
Keep organized and accessible records of all transactions and tax filing
Under take the process
Cooperate with auditor, provide requested information ,and answer the questions
Resolution
Review audit Finding ,Make necessary corrections, and implement changes to avoid future issues.
Understanding the different types of tax audits can help you prepare more effectively. Correspondence audits are usually less intrusive, handled via mail and focused on minor discrepancies.
✔Correspondence Audit: Conducted through mail for minor issues, requiring additional documentation to be sent.
Office Audit: Takes place at the IRS or tax authority office, focusing on specific aspects of your tax return.
Field Audit: A thorough examination at your place of business or home, involving detailed scrutiny of financial records.
Types of Tax audits
.png){kind=logo}
Types of tax audits
Prepration
Gather and review all relevant tax documents and records
Understanding Tax Law
Know the applicable tax regulations and compliance requirements
Identify risk
Spot Potential compliance issue and review past audit findings