Updated July 24, 2015
Tax Audit Services Chicago Illinois
It seems as if Federal and State Income Tax Audits of professionals involved in the service industry are on the rise.
Numbers published by the Internal Revenue Service showing the results of their enforcement activities, prove that not only the number of audits performed nationally but also the amount of money received by the IRS as a result of these audits have increased substantially. We believe that this trend will continue to increase in the coming years due to the record deficits being generated by our federal, state, and local governments.
Please remember that the main functions of the Internal Revenue Service and the Illinois Department of Revenue are to collect taxes. They do this through the enforcement of laws passed by Congress and the State of Illinois. If you are currently involved in an audit, the best thing that you can do is to get adequate representation. The job of the government is to enforce the law, and collect as much tax as is legally allowable by law. They are very good at their job. Representing yourself in an income tax audit simply makes it much easier for them to collect more.
There are many things to be concerned about in an income tax audit. But probably the largest concern is the possibility of a charge of tax evasion. If it can be proven that your business took in more money than was reported on your income tax return, then there is the possibility of both criminal and civil penalties. In other words there is the possibility that you will not only have to pay additional tax, interest and penalty, but also that you will go to jail for income tax evasion. Representing yourself in these examinations substantially increases your risk.
Another common mistake is not knowing what you are doing. Just because you think that you should get a deduction for something does not mean that it is legal for you to receive it. No one with half of a brain cell has ever said that tax law is fair. It isn’t. Not knowing the law and not speaking the language of taxation is the easiest way to get an unfair audit result.
If you are having problems with your Tax Audit Services Chicago Illinois or have issues with your accounting in general, we would love to help. I enjoy hearing from my readers, and can be contacted at
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Chris Amundson is the President of Accounting Solutions Ltd., a full service public accounting firm of Certified Public Accountants and Enrolled Agents handling the bookkeeping, accounting, tax preparation, and audit representation needs of Businesses, Estates, Trusts, and Upper Income Individuals