An auditor is able to use different information in order to find out various mistakes and errors in your records. Many times people try to handle a tax audit on their own, which often times leads to greater trouble with the Canada revenue agency. The best way is to hire a tax relief specialist so they can talk to the auditor and provide the only information that is legally required.You can visit highburytaxsolutions.com/ to know more about tax audit.
The Way A Tax Audit Works
An auditor usually starts off by going through a year's worth of records and asks for more paperwork if they feel it is necessary. These records can consist of bank statements, alimony, federal and state tax refunds, pensions, receipts and sale of assets.
The job of many tax relief companies is to prevent an auditor from expanding past one year of records to impede any additional changes to your records. The reason why an auditor may exceed one year of records is if they continue to see errors in your tax returns that stretch farther than a year.
This can result in additional changes and more tax penalties against you. In an effort to prevent this, tax relief companies perform an audit of their own to evaluate your records in advance of the scheduled audit date.