It’s
a frightening notion to have the IRS call you and tell you that your previous
year’s tax return needs to be audited. After all, the penalty when they find
something wrong with your file is often nothing short of dire (wage
garnishment, anyone?). With that in mind, there are certain things you can do
to minimize the impact of the situation.
Provide the agents only
what they ask for.
You
might be compelled to provide more than what they ask of you—don’t. Resist the
urge to volunteer information. The fastest way to deal with an IRS audit is to
confine it to the issue/s raised. Any additional information could attract the
auditor’s attention to something that he might not have thought otherwise, and
that could lead to more problems for you.
The IRS can make
mistakes.
Agents
can overlook data and make erroneous computations as easily as a taxpayer can.
Sometimes, you can successfully argue a discrepancy. If you believe your
auditor made a mistake, then don’t hesitate to provide proof(s) that contradict
his claim.
Get help.
You
can have someone else represent you in an audit—you don’t have to go through it
and handle it alone. Hiring a tax attorney or a professional that offers IRS
audit representation services can give you peace of mind. You’ll have someone on
your side who knows the ins and outs of the auditing process and tax laws.
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