Alexis Glick, one of Money for Breakfast’s host, interviewed Ms. Deutch in a segment focused on the “mood on Main Street” and IRS audits. During the interview, Ms. Deutch gave advice to taxpayers on preparing for an audit.
“The mood on Main Street is affecting the IRS,” Deutch claimed. “It is putting them in a bad mood as well. People cannot afford to pay their taxes when they lose their jobs. Look at the business out there, look at the corporations, everyone is struggling to pay the IRS. And the IRS is like a business that needs to collect money to survive. So how are they going to get that money? Very simple. They are going to audit people at unprecedented rates.”
“There are two types of audits,” Deutch explained. “The first is a letter correspondent audit where the IRS wants you to substantiate something small on your return. So when you get that letter they are focusing on one item in your return, maybe two. You should respond without delay. The other type of audit is worse. It’s a field audit, and I believe these types of audits will increase this year. The IRS is going to show up at your business, knock on your door, and audit you.”
“Audits are horrible, but do not panic,” continued Deutch. “Take a deep breath, and focus on the issues at hand. Do not engage the IRS in idle chatter. The IRS is going to make you feel nervous, even if you have nothing to hide.”
When asked about the tax deadline, Ms. Deutch warned that “if you are not prepared then do not file your return. The economy is making people desperate and people put wrong numbers down thinking they will not get audited. Do not file your return unless you are ready. You have the option to request an extension, and even though you will have to pay interest I think its better to pay that then to file a return with incorrect information.”
Millions of people recognize tax attorney Roni Deutch as The Tax Lady. She has been helping taxpayers nationwide resolve their tax liabilities for nearly seventeen years. As an industry leader, she saved her clients tens of millions of dollars and has helped thousands of families settle their back taxes. In 2006, Ms. Deutch launched the Roni Deutch Tax Center™ to provide quality income tax preparation services to taxpayers avoid back taxes in the first place.
