Episode 42: What kind of audits are out there?

Audits are COMPLICATED. There are a number of audits that can be performed at the local, state, and federal levels, and Julie is here to break them down. Today's episode gives you the 4-1-1 on different kinds of audits, steps to take when you're being audited, and some info on how to avoid a scam audit. As always, we recommend consulting with a CPA, an EA, or a tax attorney for any legal advice. Episode Highlights: What are some common types of audits? Worker Classification Audit - employee v. contractor Income Tax Audit - matching 1099s and W2s against your tax forms Income Tax Audits are the most common audits Unemployment Audit - former employee/contractor has filed for unemployment Worker's Compensation Audit - employee/contractor has filed for worker's compensation What should you do if you are under an audit? Don't let the notices pile up! Open all mail you receive from the IRS and read through it carefully Most mail from the IRS will include action items and deadlines to complete the action items Find appropriate representation Contact a CPA, EA, or tax attorney The right representation can help guide you and provide best practices Find representation with audit experience Respond to the IRS correctly and on time Your representation can assist you with this Appeal any incorrect findings discovered during the audit Links & Resources: GreenOak Accounting Therapy For Your Money Podcast