If the IRS has notified you that you are being audited, you need to make sure you are prepared. Audits can be very scary and can cause you a lot of problems if the IRS discovers issues with your return. Whether it is your personal taxes that are being audited, or taxes for your business, you will want to start getting ready for the audit as soon as possible. The following five tips can help you to ensure you are ready and give you the best chance possible to avoid issues with the IRS.
Get Your Paperwork in Order
One of the most important things you can do to get ready for an audit is to make sure you have all your paperwork in order. This means having your tax returns for the year being audited – all your W-2’s and other items. You will also want to have any receipts for expenses that you had claimed when filing your taxes.
Don’t Provide Unrequested Information
When working with the IRS, you don’t want to give them any more information than they ask for. Unfortunately, many people offer extra paperwork or tell them more than they needed to know. While many times this won’t cause any issues, you never know if what you say will make the IRS agents notice some type of problem. You do need to provide all the information requested of you, but it is a good idea to keep it to a minimum.
Know Your Rights
Before meeting with the IRS agents, make sure you read up on your rights. This can help you feel more confident and comfortable, which can make the entire experience easier. It can also help ensure you don’t do something you are not required to, which can cause issues later. If you don’t have time to learn about all your rights when working with the IRS, consider having a tax attorney represent you during the audit.
Ask for Time
If you don’t think you can get everything you need together by the date of the audit, don’t hesitate to request to delay the meeting. It is essential to be well prepared and have all the documents, so just submit a request for a delay. They are typically approved without a problem and can help ensure you don’t go into the meeting unprepared.
Appeal Results
If you don’t like the results of your audit, you can always appeal it. The appeal process can allow you to negotiate a compromise or even go to tax court to try to get better results. This can potentially save you a huge amount of money so make sure you are well aware of this option.
If you are facing an audit or some other type of dispute with the IRS, don’t face it alone! It’s important to have an experienced tax attorney on your team. Please contact us today to learn more.
Written by E. Morgan Maxwell
Since beginning his own firm, Mr. Maxwell has continued a tax-law oriented practice encompassing a wide range of transactions, planning and dispute resolution. His dispute resolution experience includes involvement at all levels of the Internal Revenue Service (Examinations, Appeals, Collections, Office of Professional Responsibility, the U.S. Tax Court), the Pennsylvania Department of Revenue, the Tax Litigation Section of the Pennsylvania Attorney General’s Office, Pennsylvania Commonwealth Court, Common Pleas Court and local taxing jurisdictions in southeastern Pennsylvania.
