When it comes down to tax season we all look forward to that big refund dreaming up of what you’ll do with. The one thing we all dread is either getting your return denied, or worst, being audited. Usually you can hire a tax professional to help you out, but you still have to know how to initially handle the situation.
Let’s go over how Daily Finance suggests you handle an audit. First off, don’t ignore the audit notice and follow whatever instructions the IRS provides. The letter should explain why you’re being audited and what you need to support your claims. Organize the paperwork you need and make copies ahead of time to provide to the auditor. Don’t bring in your entire life’s tax forms though, focus on the issue at hand only.
On that note, don’t get defensive either. There are certain triggers that bring about an audit so don’t assume you’re being singled out or did anything wrong. Annually about one percent of tax payers are audited.
Once you’ve come to terms with the audit Taxpayer Advocate Service is an IRS sponsored service that can help you get connected with tax professionals and sources to help you out. If you own a small business the website can also provide tons of help and resources.
To learn more about how TAS suggests handling an audit, watch the video below.
