Anyone been through an Audit with the IRS?

Question

any suggestions/ advice?

Answer 1

Contrary to popular belief, auditors are not the ogres they are made out to be. I do not work for the IRS, but I do work in the tax field.

Be on time - common courtesy, no sense getting off on the wrong foot

Ask questions if you don't understand - they want to help, but can only do so if you understand. They may expect certain things to be done and if they are not, ignorance is something you won't be able to claim if they've talked to you about it.

Be prepared - I recently had a hearing with an individual who brought nothing - this after having explained that they would need to provide all documentation related to the issue. You can't help yourself if you have nothing or are not prepared.

Be Honest - The first thing to remember in tax filing is to be honest. It seems rather trite to actually have to tell taxpayers to be honest on their taxes, but thousands of people every year “cheat” or claim dishonest adjustments on their taxes.

If you used a professional to do your taxes - have them help you in the audit - especially if it is a complicated return.

Another thing to consider is the consequences of an audit. If it is determined that you intentionally filed a fraudulent return, which is a federal offense, you could face jail time as well as hefty fines and penalties. Being honest on your taxes is not only the law; it is a sure-fire way to stay out of trouble. Keep your information and your records updated and don’t fall into the ignorance trap.

Keep your Tax Records and Documents - You will also need to find out what records to keep and make sure that you have your last three years tax returns along with any required receipts and records handy.

Above all, file your taxes honestly and make sure you file them on time. Audits are costly in time and inconvenience, but a necessary process to keep fraud to a minimum and to keep fairness in the system. The tax code is complicated, so if you have questions, pose them to a qualified professional, not just your neighbor. Misinformation can get you into trouble as well as dishonesty.

Answer 2

Whatever you do, do not go at it alone. The IRS Agent will be licking his chops if he sees that. Hire an EA or CPA to represent you in front of the IRS. Most EAs that I know recommend that the you do not even attend the audit. Let the EA/CPA go in your place. That is their job.

Answer 3

yes -- give them your complete and undivided attention. make sure you ask questions and keep in communication with them if you don't understand their requests. always make copies of everything that you give them. cooperate with all deadlines.

document who you talk with - date, first and last name. ask for a confirmation number if one can be supplied.

if you need to consult with a tax consultant to aid you through the process. be prepared to pay for this service.

if you filed your own taxes and have overstated/or understate figures be prepared to negotiate if need be.

whatever the reason. i wish you the best.

Answer 4

good luck? sorry I dont know much just that if you mess one year up they may look at multiple years(like 6 in my grandmas case)