| When you receive a notice from the Internal Revenue | | | | things to happen. First the IRS agent's job is not to sort |
| Service that you are being audited many people have | | | | and organize your records, so they will simply ignore |
| a sense of fear and panic and often due nothing. This | | | | your shoe box. Second the IRS will become upset and |
| will result in the IRS filing a notice of deficiency against | | | | will start to look at other years to audit. |
| you and the next thing you know is that your bank | | | | When meeting with the IRS do not volunteer any |
| accounts or wages are being garnished by the IRS. | | | | information. The IRS agents love to have the taxpayer |
| So do not ignore the IRS, open up those envelopes | | | | at the audit meeting because they know that the |
| and call them back. Let them know you will be | | | | average person talks too much. This usually results in |
| contacting a tax professional to assist you with your | | | | giving the IRS agent information that will be harmful to |
| audit. This will buy you some additional time. | | | | your audit. |
| When you do call the IRS, every agent must give you | | | | If you are missing a receipt or a check stub, let the IRS |
| their name and badge number. It is very important to | | | | know and tell them that you are trying to get another |
| write down their badge number, the date and time of | | | | copy from the bank or the store where you bought |
| day that you called. You must document all of your | | | | the item. Also ask the IRS what you can give them if |
| contacts with the IRS. | | | | you can not get the original receipt or check. If you |
| Find out why the IRS is auditing your tax return. Are | | | | bought a computer and deducted the costs on your |
| they auditing you because of losses on a Schedule C | | | | tax return and can not find the receipt, then ask the |
| Tax Form or are they looking at your rental losses. | | | | store for a letter stating that you did in fact buy a |
| Sometimes the IRS notice will even tell you what | | | | computer. |
| information they are looking for. | | | | Remember that the IRS is a person also and always |
| Start gathering your original source documents as | | | | be polite and courteous to the IRS agent. The last thing |
| soon as possible. Often people will wait until a day or | | | | you want to happen is for the IRS to make a note in |
| two before their meeting with the IRS before gathering | | | | your file that you are a problem person. |
| their documents. But gathering together your records | | | | IRS Tax Audits can be very difficult, costly and often |
| can take a lot of time and you want to make sure that | | | | you will only get one meeting with the IRS agent so |
| you do not miss anything. | | | | make the most of your meeting. It is worth the |
| Organize your records before your meeting the IRS. | | | | additional expense of having a tax professional go with |
| The worst thing that you can do is to just give them a | | | | you to the audit but make sure the person is qualified. |
| shoebox of receipts and records. This will cause two | | | | |