The Process of an IRS Audit - What to Do and How to Get Through It

Although most of us worry about what would happenare missing documents make sure to get copies of
if the IRS knocked on our door asking for tax records,them because it is your responsibility to prove the
only a small percentage of Americans will ever beauthenticity of your deductions and such. In addition,
audited. But what if you ended up being one of theseproviding a full and accurate accounting of your
select few? It is probably a good idea to seek outrecords will get you off on the right foot with the
professional tax advice if you are audited. However, ifauditor, as opposed to having to explain discrepancies
you choose not to go this route then there are thingsor missing information.
you should know and do to help you get through theAnother important thing to remember is that you have
process.to take responsibility for your materials. The IRS is not
The first thing to do is to respond and quickly. In mostresponsible for what you provide them and thus it is
instances you have 30 days to address and respondwise to bring copies to the auditor rather than originals
to the audit notification without penalty. Such penaltiesso that you can maintain the required documents for
often include bills sent to you. Next, informationyour personal records. Don't rely on the IRS to look out
recognition is essential. The IRS notice will inform youfor your interests or inconvenience because they likely
of what is being looked at in the audit. It is important tomay not.
read the notice carefully as knowing and understandingLastly, if you have a disagreement with the IRS official
what is being examined will allow you bring thethat cannot be worked out then appealing the decision
necessary materials with you to the audit. Don't botheris a possibility. However, it is important to recognize
bringing materials or information that isn't relevant tothat appeals officials will likely be more knowledgeable
what is in question. There is no reason to give theand senior than the agent you dealt with. Hence both in
auditor more information than they have asked for, thisterms of time and complication it is probably a good
can only hurt you or cause more issues.idea to try to figure out any problems with the original
Once you have collected the relevant information andagent without having to go through the process of an
documents, try to put them together in the properappeal.
order. This will speed up the process, which is in theHopefully these tips will help you get through the audit
best interest of you and the auditor as well. It is alsoprocess if you choose to go it alone without the help
important that you fill in any gaps in your records. If youof a tax professional.