How to Make an IRS Audit Less Painful
Remember the reason for an audit., Keep your books in good order., When the IRS notifies you about an audit, they will give you the choice of having the audit meeting at the IRS office or at your office., Only bring what's necessary., Use a tax...
Step-by-Step Guide
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Step 1: Remember the reason for an audit.
The IRS performs an audit in order to get justification about certain, specific items included in your tax return.
They are not looking to harass you, or cause you trouble. -
Step 2: Keep your books in good order.
Keeping your records in good order will make finding information for the IRS much easier and quicker. , Always have any meetings at the IRS office.
If you let the IRS agent into your office, you have given him or her the opportunity to view your whole operation.
They will look for other items to question you about in addition to the original audit item.
If you must have the meeting at your office or the agent insists on it, do not let him or her get comfortable.
If you have a spare office that is usually too cold or too hot, use that one.
If you have the meeting at the IRS office, it forces the agent to focus on the original item only. , When you go to the IRS office, only bring papers directly connected to the item being reviewed.
If the auditor wants to see your receipts for your charitable contributions, that is all you should provide.
The auditor may want the canceled checks, but you shouldn't volunteer them.
Auditors are evaluated on how many audits they complete.
If you slow the process, (Do NOT argue over what is necessary or take other steps that will cause suspicion or create animosity.) For example, if the IRS is auditing travel expenses, take the receipts that will back up the deduction, and no more.
If you take your complete set of business records, the agent is sure to take some time "looking for backup information" for your deduction.
In reality, they will be looking for other, unrelated items that don't "look right." If you have the meeting in your office, they have every right to look through your files for the same things. , If a CPA or EA (enrolled agent) prepared the return, he or she is the first person you should contact. -
Step 3: When the IRS notifies you about an audit
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Step 4: they will give you the choice of having the audit meeting at the IRS office or at your office.
-
Step 5: Only bring what's necessary.
-
Step 6: Use a tax professional.
Detailed Guide
The IRS performs an audit in order to get justification about certain, specific items included in your tax return.
They are not looking to harass you, or cause you trouble.
Keeping your records in good order will make finding information for the IRS much easier and quicker. , Always have any meetings at the IRS office.
If you let the IRS agent into your office, you have given him or her the opportunity to view your whole operation.
They will look for other items to question you about in addition to the original audit item.
If you must have the meeting at your office or the agent insists on it, do not let him or her get comfortable.
If you have a spare office that is usually too cold or too hot, use that one.
If you have the meeting at the IRS office, it forces the agent to focus on the original item only. , When you go to the IRS office, only bring papers directly connected to the item being reviewed.
If the auditor wants to see your receipts for your charitable contributions, that is all you should provide.
The auditor may want the canceled checks, but you shouldn't volunteer them.
Auditors are evaluated on how many audits they complete.
If you slow the process, (Do NOT argue over what is necessary or take other steps that will cause suspicion or create animosity.) For example, if the IRS is auditing travel expenses, take the receipts that will back up the deduction, and no more.
If you take your complete set of business records, the agent is sure to take some time "looking for backup information" for your deduction.
In reality, they will be looking for other, unrelated items that don't "look right." If you have the meeting in your office, they have every right to look through your files for the same things. , If a CPA or EA (enrolled agent) prepared the return, he or she is the first person you should contact.
About the Author
Elizabeth Morgan
Experienced content creator specializing in pet care guides and tutorials.
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