Understanding Your IRS Audit

There are two words that can send sheer terrorform of URS audit is the field audit. That is the one
through most people and those words are IRS audit.that is responsible for striking fear in the hearts of
You probably just shuddered. The good news is thetaxpayers. A field audit is when the IRS comes to your
chances of getting audited are not in your favor. Abouthome or office and conducts an investigation into your
1 in 75 people get audited and audits are nottaxes. This one is serious and you need a professional
necessarily random. The IRS is pretty good atto protect your rights.
identifying returns that have actual mistakes. If you doWhatever kind of IRS audit you may be subject to the
get selected it doesn't mean that the IRS thinks youmain thing to remember is to not panic. Even though
are a tax cheat. It just means that there appear to beyou make mistakes the IRS does too and most audits
some irregularities with your return and you shouldn'tgo off fine and sometimes you may even get money
panic.back! There are a few things to remember. First of all,
There are three types of audits and each carries adon't blow off an audit. No response will bring serious
different level of severity. The first is therepercussions. Second, have all you ducks in a row.
correspondence audit where you communicate withScare up any documentation that may be relevant
the IRS on your return via mail. This is the mosteven it includes register tape receipts kept in the
common of audits and usually only is meant to verifyproverbial show box. Being prepared will really help.
certain documents involving a third party. Next is anWhat you really should do in the face of any IRS audit
office audit in which you visit the IRS on their turf andis consult a professional who can make sure your
usually are asked in advance to bring certainrights are adhere to during the audit process. Not only
documentation to verify information on your return.will this give you peace of mind, tax experts know
This is a good time to consult a tax professional asexactly how to handle all three audits best.
you will be subject to somewhat of a grilling. The third