Prior Year Taxes – Does it Increase the Chance of Audit?

Posted on 27. Jun, 2012 by in File Prior Taxes, Filing Prior Returns

Can you just imagine?  That dreaded letter that you are about to be audited has just come in the mail.  Even if you have everything completely in order and nothing to hide, there is likely still a sinking feeling in the pit of your stomach.  Nobody wakes up in the morning eagerly anticipating being audited.  It could happen however, and even the most prepared cringe.  Those who are not prepared, however, could fly into full fledge panic.  One of the major issues if you are going to be audited is prior year taxes, especially if they have not been filed.

Though this will not be fun, there really is no reason to panic.  The first thing you need to do is gather all of the information you anticipate you may need.  This could include receipts for medical expenses, charitable contributions, and documentation of income.  Anything you anticipate could possibly be needed, get it.

The next step is to find a reputable CPA that is experienced in dealing with prior year taxes, if you do not have one already.  It is not likely that you do if you have prior taxes that are not filed.  Ask around, check the yellow pages, or just call around if you cannot find a good reference.  You can tell a lot by simply talking to someone.  If the CPA treats you with respect regardless of your situation, that is a good sign.

Once you settle on a CPA, he will go through the information you provide and inquire about other information he may need.  For the purposes of filing prior year taxes before an audit, expect to spend a lot of time either with the CPA or on the phone with them.  There will be many questions that only you can answer in order to get the information needed to file prior year taxes.

The problem is that if you have already been selected for an audit, you are likely not going to have this done before the auditor arrives.  Your best bet at this point is to show due diligence and an effort to get the job done, done right, and not make the same mistake twice.

We are a CPA firm and we help clients who need to file prior tax returns.  Call us now for a FREE consultation at 1-888-570-1033.

Tags: ,

Comments are closed.