What To Do In Case Of An IRS Audit
Most people have definitely no clue whatsoever when it comes to their rights in an IRS audit. Luckily, these rights are safeguarded during the course of the audit process, not to be violated by the IRS. One of the most important rights during an audit process is just having the right to an explanation of the entire audit process and what’s going to occur and what’s happening. Much like any legal proceedings, you also have the right to be represented by an enrolled agent, a CPA, or a tax lawyer. One of the lesser known rights is the right to claim additional deductions which you didn’t claim on your original tax return. You also have the right to take any issues with your particular IRS agent that may arise in your audit to the national IRS office. Being aware of your rights in an audit can make the process much smoother, but most importantly, it can help ensure that you’re treated fairly by the auditor regardless of what your IRS problem may be.
There are things you can do to gain a benefit when you get your audit notification. For instance, you can ask that your audit be postponed. This way, you will 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 gather financial documentation. Another tip that must be observed by everybody who is going through an audit is to read IRS Publication 1. This is the Taxpayer’s Bill of Rights. These are the basic rights given to any taxpayer in the United States and you must definitely read up on the content that’s in this booklet.
Regardless if you are being represented by a CPA or a tax attorney, 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.
It’s recommended to only bring documents outlined in the notice pertaining to the case. IRS problems may result if you bring any more. The auditor might be prompted to probe further into areas that they initially overlooked.
Being prepared is the best way to end an audit quickly. If you are able to back up all your claims, the auditor will most likely realize that you have documentation to support the issues in your tax return.
No matter how heated the situation is, it is always best to be courteous. Of course, you would expect to be treated the same way by the IRS auditor. Lying should be avoided at all costs. Any IRS issue can be prevented if you simply tell the truth.
Filed under Blog by 
