It’s been about a month since Tax Day, and there may be some people out there who are biting their fingernails out of fear of an audit. We talked about this very topic around Tax Day as well, pointing out that an audit is a rare occurrence — and it will be even rarer this year as the resources and funding associated with the Internal Revenue Service have been trimmed.
But even though the chances are slim that you will receive an audit notification from the IRS, there’s still a chance. So what should you do if you are audited?
First of all, you want to read through the entire notification that you get from the IRS and be sure that you understand the agency’s request. They may not actually be auditing you — instead, they may just want additional information about your taxes to clear up any confusion on their end.
Once your audit is confirmed, then it’s time to get yourself organized and prepared for the audit. Consulting a tax attorney is an important step, in addition to gathering all pertinent financial and tax documents that could help you deal with the audit efficiently and effectively.
Last but not least, remember to remain calm, cool and collected when dealing with the IRS. This is one of the more difficult aspects of the process, even though it is a simple step. You want to be prompt in your correspondence with the IRS, while also refraining from emotional or angry outbursts. Remain courteous and respectful, and you can get through your audit.
Source: FOX Business, “What to Do if Your Receive an Audit Letter from IRS,” Donna Fuscaldo, May 9, 2014
