What to expect during a tax audit in Louisiana

Different things can trigger a tax audit, including filing taxes inaccurately, a company incorrectly charging tax or if the tax office discovers issues with other taxpayers you work closely with, such as business partners or investors. You may also be randomly selected for an audit. In such cases, seeking the advice of a Baton Rouge Tax Lawyer can be beneficial.

Here is what to expect if you are selected:

A written notice

If your tax return is under audit, an auditor from the Louisiana Department of Revenue (LDR) will send you a written correspondence in the mail. Note that the auditor may call you first to verify your contact information before sending the notice.

The notice will include the years under audit, the documentation to provide, where to send the documentation and the auditor’s contact information.

Different audit services

LDR offers different audit services. If you are under an individual income tax audit, your process can be conducted in person or by correspondence (by mail, email or phone call). This will depend on the complexity of the audit and the amount of documentation required. Typically, most audits are conducted by correspondence, but your auditor will notify you if an in-person meeting is necessary.

Computer-assisted audits are also available to Louisiana taxpayers. They are less disruptive and more efficient. Computer-assisted auditing can also be used to audit certain aspects of businesses.

A Managed Audit program is another audit service offered by LDR. It’s suitable for businesses. This audit option allows taxpayers to conduct a self-audit – the taxpayer conducts most of the audit functions with the help of an LDR Computer Audit Specialist (CAS). One must fulfill strict requirements to qualify for this audit service.

It’s vital to be informed about the tax audit process in Louisiana if your tax return is due for audit. You should also get legal guidance to avoid costly mistakes.