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Audit Tax Tips

8

    Don't procrastinate

    • When you receive notice from the IRS that you are being audited, begin preparations immediately. Gather all necessary documents as soon as possible. Some of the documents the IRS acquires may take time to find or replace, and going to your IRS audit hearing without the required documentation could cost you money.

    Notice the reason

    • When you receive a notice from the IRS that you are being audited, notice the reasons given for the audit. Focus on gathering the specific documents and information the IRS will require of you. You only get one meeting to plead you case to the IRS, so don't waste time gathering information and documents you won't need.

    Be polite

    • Be courteous and polite when when speaking to IRS representatives. Remember that the goal is to present your situation in a positive manner, and a favorable impression from the IRS auditor is vital to making sure the judgment is in your favor.

    Don't go it alone

    • Call your accountant as soon as you receive notice of an IRS audit. Your accountant likely has been through many audit experiences and can help you to be as prepared as possible. Include your accountant in all phone calls and meetings your audit requires. Consult your accountant beforehand to ensure your explanations are the same. If the IRS receives conflicting information from you and your accountant, it will sink your chance of success.

    Choose your meeting place carefully

    • Hold your audit hearing at your accountant's office or the IRS office. If you come to the hearing armed with every document requested by the IRS, you won't be put on the spot to produce other documents. However, if you meet at your home or office, you could find yourself in a position where you are asked for a document you do not have immediately available. This can create an awkward situation.

    Keep cool

    • Above all, remain calm. Once you've prepared thoroughly, trust in your preparation.

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