What To Do In The Event Of An IRS Audit

You have rights to ensure that you will be justly treated no matter what your IRS problem is. To be safeguarded in an IRS adit, you must be aware of what your rights are. You have the right to an explanation of what's happening and what is going to happen during an audit proceeding. Representation by an enrolled agent, tax lawyer, or CPA is also another right. Unclaimed deductions in your original tax return can also be claimed as another one of your rights. You also have the right to take any problems that may arise with your particular IRS agent to the national IRS office.

It is advised to read IRS Publication 1, the Taxpayer's Bill of Rights, when going through an audit. All the taxpayer's fundamental rights are contained in this booklet. Another thing you can do is postpone your audit to give you more time to organize documents to support your case and to refresh your memory regarding the contents of your tax return.

Regardless if you're being represented by a CPA or a tax lawyer, meeting your counsel prior to the audit is advised. This way, you can brainstorm for strategies on how to handle the points brought up by the IRS auditor.

An essential tip is to only bring those documents which the audit notice has asked for to prevent a bigger IRS issue. Providing more information than what was required in the audit notice is something you don't want to do. Doing so may give them more information which enables or prompts the auditor to ask and delve further into areas which they were not going to delve into initially. You'll only be providing them more ammunition this way.

Just being prepared to support all of your claims is the best way to end an audit sooner rather than later. The more thoroughly ready you are, the less likely an agent will spend time searching for more reasons to keep the auditing going. They'll get the sense that regardless of what issue they look into, you'll be ready to provide supporting documentation.

Regardless of how tense the case becomes, it is always best to be professional. Obviously, the IRS auditor must treat you the same way. Lastly, don't lie. Any IRS issue can be avoided if you simply tell the truth.

Share on Facebook

Originally posted 2008-11-26 22:45:29. Republished by Blog Post Promoter