Do you agree that a letter from the Internal Revenue Service (IRS) increase your heartbeat, even if you file your return under the surveillance of a professional US taxation specialist? Now that most tax refunds are depositing directly into taxpayer’s accounts, still an audit letter from IRS Singapore become a matter of concern for many taxpayer’s. It’s because of their extensive computer matching, knowing that the IRS does most of its auditing through correspondence. The letter from IRS can shivers up the spine of even the most conservative taxpayer.

For many taxpayers, the dreaded auditing procedure has resulted either in a nightmare visit to IRS office or the worse, visits of revenue agents directly to their home or business addresses. The visit of  IRS professional to taxpayer’s provided address can put their reputation at stake.

If you do receive a dreaded audit letter from the IRS, stay calm and understand that the auditing of  US tax returns Singapore is a professional procedure that will be resolved by the accurate presentation of correct documents. With the assistance of a tax professional, it will become easy to address errors, handle numeric discrepancies, communicating logical with IRS agents and completing the process with no hassle.

Why The IRS Contact You Via Mail?

When the IRS observes any potential issue with your tax return filing, only then he may initiate contact you via US mail. During their auditing procedure, IRS first matches what you have reported on your tax return to the data that third-parties, like bank, brokers or employers reported on their return. When this information didn’t match with each other report, IRS detects an issue and contact you.

Things You Need To Prepare

1. Firstly, don’t get panic- A letter from IRS is normal there’s nothing to take stress, which hampers your work or creates any health issue. Taxpayers need to understand that an audit in no way implies that you’re suspected of any criminal activity. It is just a job to confirm or re-confirm accuracy. The audit process is all about assessing your tax return as a US expat Singapore and doesn’t imply that you’ve intentionally made any error to become eligible for exemption and pay lower taxes.

2.  Prepare for an audit- If you’re being audited, the IRS will contact by mail, not by email. In the mail, you’ll be informed of the documents that are to be examined and what documents you may need to present. So, compile up all those necessary documents and get the paperwork ready. If you find that you have misplaced any particular records or document that the IRS has specifically mentioned in the notice, immediately call and request that duplicates be sent to you.

3.  During the Audit with IRS: Know Your Rights- During the auditing process, you’re entitled to the taxpayer rights during the audit process, according to the IRS:

  • Right to professional and polite treatment by IRS employees
  • Right to privacy and confidentiality for your tax return
  • Right to know why the IRS is asking for document & how they’ll use it
  • Right to fair representation, by oneself or an authorized tax representative

Thus, when you receive a notice from the IRS, don’t get hyper.