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What Information Needs to Be Given to the Government During a Tax Audit in Tucson?
June 1st, 2023
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News & Politics
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3 minute read
What Information Needs to Be Given to the Government During a Tax Audit in Tucson?
Tucson, AZ - Some people may find that the IRS is going to conduct an audit of their personal taxes or business. This generally means that the filing was flagged because something does not look correct, and the government needs more information to determine if the person’s taxes are proper and if they owe any additional money. Lawyers are crucial for assistance during this process, as the person does not want to appear to be hiding information or trying to mislead the government, as these mistakes can be costly. Here is a brief overview of what the IRS needs if they are auditing taxes. Account statementsA person will usually need to show the IRS what kinds of transactions and amounts are entering and leaving bank accounts. Depending on the situation, this can be either personal or business accounts. Statements from credit cards can be used as well to show things like payment amounts and the types of expenses that were put on the credit card, as well as if it was used for business purposes. People who claim deductions related to other bills and utilities that were used for deductions can also show these from the credit card statement instead of providing the actual bills from the company. Bills, invoices, and receiptsIf someone has said that they had business expenses, made donations, or claimed other deductions, there should be some kind of documentation to prove this. Receipts from buying things or giving donations should always be retained by the person if they plan to claim them on their taxes for that year, and they can be turned over to the IRS if needed. Tucson tax lawyers or other tax professionals can give advice about what counts as a legitimate deduction or business expense to avoid future audits. Business and employee documentation
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