Tax preparer did taxes got audited now what?

Question

I dont know the reason why we got audited and the tax preparer was someone off craigslist. Still awaiter her to give us tax information. We dont know how to do taxes. what should be our next course of action?

Answer 1

Don't worry.  This happens all the time.  It is a good reason to use somebody like H&R Block who keeps offices open year around to help with off-season audits.  (Their Peace of Mind guarantee costs a little extra but can be a life saver in case of audits too.)

If you are getting audited, you probably received a CP notice of some kind.  The CP-2000 is the most common.  Just read it carefully and it should explain what they are looking at.  You can call the 800 number of the person in charge of your audit and have them explain it to you if you still don't understand.

Most audits are correspondence audits - you just have to mail something to them.  If yours is an office audit, that means you have to visit your local IRS office and explain something.  

If that makes you nervous, you can have somebody go in your place.  They have to be a CPA or Enrolled Agent or attorney.  An of them can represent you and go in your place.  A CPA costs a fortune and I don't think they are worth it.  You can hire an EA at H&R Block or some local accounting firms for a lot cheaper.  If you have done something that you think may be criminal, you should instead talk to a tax attorney.  That is the most expensive person who can represent you but is a good decision if criminal conduct is a possibility.

Answer 2

Unless you can get in touch with the Craigslist peron, go to a commercial preparer.  If you don't know one, the major chains have offices that are open all year, and they deal with this on a daily basis.

Take your letter and your tax return.  They will help you.

Answer 3

I am sorry for your situation. The first thing I would do is:

1. Not panic. For all you know, IRS may be auditing with something minor on their minds. If you panic, you may blurt out something and give them ideas that they never thought of.

2. Read the Tax return, like a lay-man. Make sure that it is filled-in correctly. Follow the instructions on the return and check for accuracy and thoroughness. This basic check may reveal any minor mistakes (minor but major impact).

3. Next, go to a regular CPA (look in the Yellow Book). Explain the situation and seek their advice.