JustPaste.it

What To Do In Case 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 during an IRS audit, you have to understand what your rights are. You have the right to an explanation of what's going on and what is going to happen in an audit proceeding. You also have the right for representation by a CPA, tax lawyer, or enrolled agent. 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 specific IRS agent to the national IRS office.

When you receive your notification that you're being audited, there are some things you can do that can give you a slight advantage over persons who don't know how to deal with an audit. You can request postponement of your audit, for example. This way, you'll be able to refresh your memory about why your tax records were filled out in the manner that they were, as well as have enough time to collect financial documentation. Reading the IRS Publication 1 is another tip that must be followed by anyone undergoing an audit. This publication is the Taxpayer's Bill of Rights. These are the basic rights offered to any taxpayer in the United States and you need to definitely read up on the content that's in this booklet.

It's also recommended to meet with your counsel prior to the audit, whether you're being represented by a tax attorney or a CPA. This way, you can come up with strategies on how to handle the points brought up by the IRS agent.

It is recommended to only provide documents required in the notice pertaining to the case. IRS issues may result if you provide any more. Areas that were overlooked initially might be probed into further by the auditor.

Simply being prepared to back up all of your claims is the best way to end an audit sooner rather than later. An agent is not likely to look for more causes to keep the audit going if you're thoroughly ready. They will realize that you'll be prepared to provide supporting documentation, no matter what problem they look into.

Of course, audits can be intense and stressful. No matter how heated the case becomes, you have to make sure that you're always courteous and polite. You must expect the IRS agent to treat you in the same manner at the same time. Lastly, one of the best and most simple things to do when you're being audited by the IRS is to simply tell the truth. Don't lie. That single truth alone can save you plenty of trouble and assist you with any IRS issue.