A tax audit is an examination into the background of tax related transactions to confirm that these are correctly calculated, paid and recorded. Since in today’s dynamic environment both business and individuals have to conform with numerous taxation and other laws so a tax audit actually ensures compliance in order to minimize tax risk exposure to the client.
The primary purpose of a tax audit is to make certain that books of accounts have been maintained in agreement with the provisions of the Income Tax Ordinance.
• Ensures that audit has effectively curbed tax evasion and ensures tax compliance.
• It enhances the reliance of stake holders
• Helps in improved tax planning
It is the most common method of tax audit & most easy to deal with, it involves IRS taking note of a correction (their gentle word for error) on your return with a notice to either pay more or clarify by providing more information
This type of audit is for business not individuals, Team of IRS auditors going on site and inspecting the books
This audit is conducted by IRS office & requires the business or individual to prove their tax return is true & correct.
For anything other than correspondence audit, you should consult a tax consultant a tax professional who can guide you through the process and prepare you for the audit. Of course, you can also retain a professional for a correspondence audit as well, but as stated, they are generally more straight forward. For field and in office audits, think of the income tax audit as a trial you always want someone representing you.
Don’t panic and just contact with our professional team and we will be happy to consult and assist you .
