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organizing your online sales finances for taxes


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organizing your online sales finances for taxes

Running an online sales business has opened a lot of doors for my family. It has provided us with the additional income that we needed to get through some hard times. My wife has been taking care of this business from the beginning and has done quite well with it. The one thing that she overlooked was the bookkeeping aspect of it. She has done her best to hold onto receipts and track spending, but she didn't do very well putting it all into a spread sheet for tax season. If this is something that you are experiencing, this blog can help you reclaim the organization you need to optimize your finances for tax season.

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Why You Need To Call Tax Preparation Services After An Audit Notification From The IRS

Have you received the dreaded notification of an audit by the IRS? An audit by the Internal Revenue Service (IRS) is a review or examination of an organization's or individual's financial records by the IRS to ensure the accuracy of reported income and compliance with applicable tax laws. Most audits are conducted by mail, but sometimes in-person meetings are arranged. If you receive a notification from the IRS that your return has been selected for audit, don't panic! Here are five ways tax preparation services can help you prepare for this audit:

1. Help You Understand What It's All About

The first step in preparing for an audit is to understand what it is and why it's happening. A tax preparation service can help explain the audit process to you so that you know what to expect.

2. Review All Relevant Documents Related to Your Return

It's important to review all relevant documents related to your return. This will help you determine if there are any errors or discrepancies that need to be corrected. You should also gather any supporting documentation that you may need, such as receipts, bank statements, and tax forms. 

Once you have all of your documentation in order, you can schedule an appointment with a tax preparation service. They will help you correct any errors on your return and submit the necessary documentation to the IRS. By working with a tax preparation service, you can ensure that your return is accurate and minimize the chances of being audited in the future.

3. Prepare You for Questions About Your Return From the Auditor

A good tax preparation service can provide you with a list of the most common questions that auditors ask and help you understand the implications of each answer. 

They can also help you develop a strategy for responding to questions so that you can minimize the chances of an unfavorable outcome. In short, a tax preparation service can play a vital role in helping you navigate the audit process.

4. Help Appeal the Audit if You Opt To

Tax preparation services can help you appeal the audit if you opt to. They can also provide guidance on what documents and information you'll need to provide to the IRS. 

And perhaps most importantly, they can help you understand your rights and options so that you can make the best decisions for your situation. So if you do get that dreaded audit notification, don't panic. Just give your tax preparer a call and let them help you navigate the process.

If you have been selected for an audit by the IRS, tax preparation services can help you prepare for the audit and ensure that you comply with applicable tax laws. Contact tax preparation services today to get started.

For more information, contact a company such as Hough & Co CPA.