How can I defend my tax return in case of a tax audit?
December 11, 2023 | 50,00 EUR | answered by Lilli Reuter
Dear tax lawyer,
My name is Anneliese Pilz and I have been running a small business for several years. In the past, I have prepared my tax returns myself, but I recently found out that my business is going to be subjected to a tax audit. As a self-employed entrepreneur, I am now worried about how to defend my tax return in case of an audit.
The situation is that I have always diligently prepared my tax returns, but I am still concerned that errors or inconsistencies may be discovered. I want to be as prepared as possible to be able to address any potential issues.
My main concerns are that I am not sure which documents and evidence I should present in case of a tax audit to defend my tax return. I am also unsure about how to behave during the audit process and what rights and obligations I have as a taxpayer.
So my question to you is: how can I effectively defend my tax return in case of a tax audit? What preparations should I make, what documents should I have ready, and how can I best prepare for the audit situation to fend off any possible objections?
I thank you in advance for your support and expertise in this matter.
Sincerely,
Anneliese Pilz
Dear Mrs. Pilz,
Thank you for your inquiry regarding the defense of your tax return in the event of a tax audit. It is understandable that you are concerned about possible objections and want to prepare as best as possible. In this context, I would like to provide you with some important tips and information to help you prepare for the tax audit.
First and foremost, it is important that you keep all relevant documents and evidence organized and complete. This includes income and expense receipts, bank statements, contracts, invoices, receipts, and any other relevant documents that support your tax information. An organized and clear filing system will make it easier for you to have the necessary documents readily available in the event of a tax audit.
Furthermore, you should be familiar with the tax regulations and rules of your business. If you are unsure whether your tax return is correct, I recommend seeking professional help from a tax advisor or tax lawyer. An expert can review and, if necessary, correct your tax return before a tax audit occurs.
During the tax audit, it is important to remain calm and cooperative. As a taxpayer, you have the right to be present and answer questions. However, you are not obligated to answer questions that go beyond the scope of taxation. It is advisable to be accompanied by a tax expert during the audit who can support you and assist you in case of any discrepancies.
Overall, it is important that you prepare well, keep your documents carefully, and seek professional help in the event of a tax audit. This way, you can defend against possible objections and successfully defend your tax return.
I hope these tips are helpful to you and I am happy to answer any further questions you may have.
Sincerely,
Lilli Reuter
