Do you have any idea about the IRS Employee Development Department audit process? People who have gone through this process often talk about the harshness of it. Without professional help, it is not possible to deal with these issues.
In this blog, we aim to help you understand the basics of the EDD audit process, the steps you need to take and some tips for sure. Hiring an IRS tax debt attorney can help you deal with this audit situation. Keep reading to learn more about EDD audit methods.
Basics of an IRS EDD Audit
IRS has the power to audit a business firm to check employment tax records as per the law. If you are running a business that has a number of employees, the IRS can send you notice and ask for an audit.
To deal with this issue, one must have enough experience in employment tax and tax laws in general. Unless you know different types of employment methods, wage reports and more, it can be hard for you.
What Will Happen During the Audit Process?
The following steps are common for an IRS EDD audit process-
1.The Federal Agents Will Notify You
Things will start rolling when the IRS sends you a notice. You will be notified properly about the audit. So you don’t need to be worried much. In the notice, everything will be written in detail. Read the notice carefully; it can be helpful in preparation.
2.You Need to Prepare Your Documents
The next thing you need to do is gather all the important documents like payroll records, tax returns, and other stuff. The more detail you can be, the better. If you are not finding the physical copy, the digital copy can do just fine.
3.Verification Round
During the first meet, the IRS agents can ask you some basic questions about your organization. There you can tell them your reservations and the date you are comfortable for the audit process. Dodge those questions that you are not comfortable with.
During the final audit program, the federal auditors will check everything important. You better be accurate in your filings to avoid their grip. They are basically looking for misclassified workers, unreported wages, and lack of taxation.
4.Final Resolution
After the completion of the EDD audit, the federal agents will talk to you about their findings. If there is something wrong with your data, they will point out that, too. Find an EDD audit lawyer in Los Angeles to get some assistance.
How Should You Deal with This Audit Process?
If this is the first time you are dealing with the EDD audit process, the following tips might help-
- Don’t panic during the audit process. Be patient and cooperate with IRS officials.
- Always have a professional around so that you can get help whenever you want.
- Communication is the most important factor during any kind of audit. You must know how to talk to these federal agents to have some favor.
We hope you will find this blog informative and helpful. Consult with a professional to learn more.