Improving My Financial Situation

About Me

Improving My Financial Situation

After struggling with money for years, I finally made the decision to start focusing on my finances. Instead of buying whatever I wanted and hoping for the best when my rent came due, I started carefully calculating my expenses and budgeting my money carefully. It took a lot of practice, but after a few months, I could tell that it was making a significant difference. I started noticing that I had more money in my pocket and that I was less stressed about the hassles involved with fulfilling my financial obligations. This blog is all about improving your financial situation.

Latest Posts

Being Audited? 3 Steps You Need To Take
16 October 2019

No one files their taxes each year and hopes to be

Tips For Securing A Business Loan
16 October 2019

If you are ready to secure your first business loa

Knowing When To Lease Equipment
22 August 2019

There are a lot of reasons why people choose to le

Do You Have Too Much Money In Your Checking Or Savings Account?
14 June 2019

If you've ever been strapped for cash, you might f

4 Reasons You Should Open A Business Banking Account
18 April 2019

If you own your own business, you want to make sur

Being Audited? 3 Steps You Need To Take

No one files their taxes each year and hopes to be audited. It is one of those things that everyone dreads and hopes that they never have to deal with. However, in the event that you get that notice in the mail that you are being audited, it can be extremely overwhelming. Luckily, the process itself isn't quite as stress-inducing as it may seem. It is important that you do seek out professional help from a tax service, but it's just as important that you are prepared for an audit. Here are three steps to dealing with a tax audit.

Examine the IRS Audit Notice Thoroughly

It is well-known that IRS notices are complex, long, and hard to understand. These notices tend to be abundant in details, and as a general rule, they have a list of instructions with them that can serve as a guide throughout the auditing process. Once the initial auditing notice has been received, make sure to sit down with the paperwork and review it thoroughly. If there is anything that is unclear or you don't understand, talk to a CPA immediately for tax assistance.

Gather Necessary Information

Once you have thoroughly read through the notice, gather together all of the information and documents that have been requested. If the IRS is questioning deductions that you have claimed, then you will need to prove their validity through receipts or other documentation. In some cases, you may be asked by the IRS to supply your previous year tax returns or income documents. To ensure you are able to easily find your tax-related documents, make sure you keep them together in one secure location.

Respond in a Timely Fashion

It is imperative that you respond to the IRS after receiving the initial notice as soon as possible. The sooner that you officially respond to the IRS, the sooner that you can eliminate the stress that you are experiencing. In addition, your fast response will reduce the number of penalties and fines that you may face. In the event that you need additional time to obtain all of the information that the IRS needs, you can ask for an extension. In most cases, you can get an extension of 30 days, allowing you to work with a professional tax service in your area.

When you receive a tax audit letter in the mail, don't assume you have to handle everything on your own. Talk to a local tax service like Balkcom Pearsall & Parrish CPA's PA for help.