The U.S. Internal Revenue Service had been in the news quite often lately – from the Affordable Healthcare Act to the alleged targeting of conservative political groups. The latest in a string of scandals has not generated massive media attention… yet. Sarah’s Palin brother, Chuck Heath has posted on his Facebook profile on January 11th that ever since 2008, when Palin ran for vice president of the United States, their father Charles Heath has been “harassed” by the IRS on multiple occasions.
Per Heath’s account, his father, who had worked multiple jobs and paid his taxes diligently for over fifty years, had never heard from the IRS until after Palin’s announcement to run in 2008. Since 2008, he has been contacted by the IRS six times, but all six times he came out clean and “he has always operated above board”.
Whether it is a coincidence or not is a debate for another time, but the lesson to be learned is rather clear – keep all of your ducks in the row. There are many things that can trigger an audit, from questionable large deductions to reporting more expenses than income or underreporting your earnings.
However, if you have been picked up by the IRS for an audit, don’t panic. Like the case with Mr. Heath shows, keeping all your information in order will help you prove your case to the IRS and dispute questionable items on your return. If you don’t like the outcome of your case, you can have it reviewed by the Appeals Division.
It is highly recommended that you seek tax representation when audited. A tax attorney from a reputable tax resolution company like US Tax Shield can help you navigate through the process, and are more likely to obtain a favorable outcome with the IRS.
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