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A tax audit is a process conducted by a tax authority to verify the accuracy of a taxpayer's tax return. It is a systematic examination of a taxpayer's financial records to ensure that all taxes have been paid in full and that all deductions and credits claimed are valid. The purpose of a tax audit is to ensure that taxpayers are paying the correct amount of taxes and that they are not taking advantage of any tax loopholes.
Tax audits can be conducted by the Internal Revenue Service (IRS) or by state and local tax authorities. The IRS typically conducts audits of individual taxpayers, while state and local tax authorities may audit businesses. Tax audits can be conducted in person or remotely, depending on the type of audit and the taxpayer's situation.
Tax audit services are provided by a variety of companies, including accounting firms, tax preparation services, and tax software providers. These companies provide assistance with preparing tax returns, filing taxes, and responding to audit inquiries. They also provide advice on how to avoid audits and how to respond to audit findings.
Some companies in the tax audit market include H&R Block, Intuit, and Jackson Hewitt. Show Less Read more