In The Event Of An IRS Audit, What To Do?
50Many people have absolutely no idea whatsoever when it comes to their rights during an IRS audit. Luckily, even if they don't understand their rights, their rights are still safeguarded and should not be violated by the IRS during the course of the audit process. During an audit process, the most important right is the right to an explanation of what is happening and what is going to happen during the whole audit process. Much like any legal proceedings, you also have the right to be represented by an enrolled agent, a CPA, or a tax attorney. It is your right to claim additional deductions that were unclaimed on your original tax return. You also have the right to take any issues with your specific IRS agent that may arise in your audit to the national IRS office. Understanding your rights ensures that you are treated justly by the IRS auditor and can make the process much smoother.
When you get your notification that you're being audited, there are a few things you can do that can offer you a slight benefit over persons who don't know how to deal with an audit. For instance, you can request that your audit be postponed. This way, you'll be able to refresh your memory about why your tax records were accomplished in the manner that they were, as well as have sufficient time to collect financial documentation. Another tip that should be followed by everybody who's undergoing an audit is to read IRS Publication 1. This is the Taxpayer's Bill of Rights. This booklet contains the basic rights offered to any US taxpayer.
It is also advised to meet with your counsel before the audit, whether you are being represented by a tax attorney or a CPA. In this meeting, you can get ready on how to deal with the points that the IRS auditor will likely bring up.
An important tip is to only bring those documents which the audit notice has requested for to avoid a bigger IRS problem. Offering more information than what was required in the audit notice is something you don't want to do. Doing so may give them more information which encourages or prompts the auditor to ask and delve further into areas which they weren't going to probe into in the first place. You'll only be giving them more ammunition this way.
The best way to quickly end an audit is to be ready. The auditor will see that you'll be able to support any problems of your tax return with documentation if you are able to support all your claims.
Obviously, audits can be intense and exhausting. No matter how heated the case becomes, you have to make sure that you're always courteous and professional. You must expect the IRS agent to treat you in the same manner at the same time. Lastly, among the best and most simple things to do when you are being audited by the IRS is to just tell the truth. Lying won't assist you. That sole truth alone can save you plenty of trouble and help you with any IRS problem.
Darrin Mish - EzineArticles Expert
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