Call Us At:

Preparing for a tax audit

Taxpayers in Maryland might find the prospect of a tax audit to be a cause for panic. However, experts recommend some strategies to make an audit easier, and they say that preparation is the key to avoiding a negative experience with the IRS.

Anyone can be audited by the IRS, but when it comes to business audits, small business and sole proprietorships are audited more often than large companies. One tax adviser says that an audit can actually be a good learning experience and good for a small business because it can teach the owner about financial organization and strengthen the company.

When a person or company is being audited, they have a right to understand the reason they were chosen, and it is okay to ask the IRS that question. It is also recommended to have professional representation in an audit by a lawyer or an accountant.

Tax returns being audited will be checked for proof of everything they contain, so having records available that back up every expense and deduction is a good idea. Credit card statements are generally not considered valid proof of expenses, so it is better to have receipts.

Someone being audited could also benefit from reviewing the tax code to understand any questionable deductions or expenses the auditor might point out. Having records that are presented in an organized manner can also help to simplify the audit process.

It might not occur to someone who is facing a tax audit that they could hire a lawyer to represent them. An individual or a small business owner who chooses to have a lawyer represent them at the audit could avoid saying something or making a mistake that could be costly. An attorney could also work with their client's tax professional towards a successful audit outcome for the client.

No Comments

Leave a comment
Comment Information

Contact the Tax Lawyers at Kundra & Associates

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Get In Touch
  • Best Law Firms U.S. News 2014
  • Best Law Firms U.S. News 2015
  • Best Law Firms U.S. News 2016
  • Best Law Firms U.S. News 2017
  • fortune leading women in the law 2013 & 2014
  • Super Lawyer
  • Best Lawyers 2013, 2014,2015 and 2016
  • Global Law  Experts | 2016 | Annual Awards Winner

Rockville Office
110 North Washington Street
Suite 406
Rockville, MD 20850

Phone: 301-637-8130
Fax: 301-424-7047
Map & Directions

Washington, D.C. Office - By Appointment Only
1025 Connecticut Avenue NW
Suite 1000
Washington, DC 20036

Phone: 301-637-8130
Fax: 301-424-7047
Map & Directions

Mumbai, India - By Appointment Only
C/o Anmol Sekhir Consultants Pvt. Ltd.
Chartered Accountants
3rd Floor, Sahakar Bazar
Opposite Railway Station
Bandra (West), Mumbai, India 400-050

Map & Directions