Episode 42: What kind of audits are out there?

Audits are COMPLICATED. There are a number of audits that can be performed at the local, state, and federal levels, and Julie is here to break them down. Today's episode gives you the 4-1-1 on different kinds of audits, steps to take when you're being audited, and some info on how to avoid a scam audit.

As always, we recommend consulting with a CPA, an EA, or a tax attorney for any legal advice.

Episode Highlights:

• What are some common types of audits?
  • Worker Classification Audit - employee v. contractor
  • Income Tax Audit - matching 1099s and W2s against your tax forms
    • Income Tax Audits are the most common audits
  • Unemployment Audit - former employee/contractor has filed for unemployment
  • Worker's Compensation Audit - employee/contractor has filed for worker's compensation
• What should you do if you are under an audit?
  • Don't let the notices pile up!
    • Open all mail you receive from the IRS and read through it carefully
    • Most mail from the IRS will include action items and deadlines to complete the action items
  • Find appropriate representation
    • Contact a CPA, EA, or tax attorney
    • The right representation can help guide you and provide best practices
    • Find representation with audit experience
  • Respond to the IRS correctly and on time
    • Your representation can assist you with this
  • Appeal any incorrect findings discovered during the audit

Links & Resources:
GreenOak Accounting
Therapy For Your Money Podcast