The IRS has given you the head’s up that you are going to be audited. That’s a bit of a problem. Now your personal financial affairs will be scrutinized. Read the letter before you do anything. It will tell you exactly what the bureau needs. Know the facts, including the year they’re auditing, what kind of audit they’re doing, and the documents they need from you. Also, remember your deadline to reply, which is typically thirty days.
Your goal is to provide information on the exact year and documents being audited only. Don’t let slip unnecessary details as these may give the IRS more reasons to scrutinize you more.
To help you support the information you supplied on your tax return, you will need to provide these documents for the period on audit:
Deductions claimed on the tax return receipts
Income statement report
Proof of payment for mortgage, property tax, donations, etc.
As soon as you receive the notice, start getting organized pronto. The documentation may take a long time to gather, as you may have to request for them from other institutions.
Answer the auditor’s questions truthfully but do not talk too much while being audited. They know this is what happens when you are nervous. Responses like “Yes, No, I don’t recall, I’ll have to check on that, What exactly do you want to see?, and Why do you want to know?” are best given.
Only present the documentation specified by the IRS on the notice you received. It may cause more harm than good if unnecessary documentation is provided. Inform them that the documents are at home if the auditor asks you about another tax year or a document that was not specified on the notice.
Your IRS issues will be over if you find the audit results acceptable and settle what you owe. But you have the right to request for an appeal if you are unhappy with the results.
If you need a Tampa Tax Lawyer or someone local to your area, we can help. Give us a call at (888) 438-6474 Tollfree.