How to Deal With an IRS Audit
When it comes to their rights during an IRS audit, most people simply have no idea.
Luckily, even if they don't understand their rights, their rights are still protected and should not be violated by the IRS during the course of the audit process.
In an audit process, the most essential right is the right to an explanation of what is going on and what's going to happen in the whole audit process.
You also have the right to be represented by a tax attorney, CPA, or enrolled agent, just like any legal proceedings.
It's your right to claim additional deductions that were unclaimed on your original tax return.
You also have the right to file a request to the national office of the IRS on a particular problem that may arise during your audit with your specific IRS agent.
Being aware of your rights ensures that you're treated justly by the IRS auditor and can make the process much seamless.
When you get your notification that you're being audited, there are some things you can do that can offer you a slight benefit over persons who don't know how to deal with an audit.
You can request postponement of your audit, for instance.
This way, you'll be able to refresh your memory about why your tax records were accomplished in the way that they were, as well as have enough time to gather financial documentation.
Another advise that must be followed by everyone who is going through an audit is to read IRS Publication 1.
This is the Taxpayer's Bill of Rights.
This booklet contains the basic rights provided to any US taxpayer.
It is also advised to meet with your counsel before the audit, whether you're being represented by a tax lawyer or a CPA.
This way, you can brainstorm for strategies on how to deal with the points brought up by the IRS auditor.
An essential tip is to only bring those documents which the audit notice has asked for to prevent a bigger IRS issue.
You don't want to bring or provide more details to the auditor than what the audit notice has outlined.
This will encourage the auditor to probe into areas that they initially were not going to delve into.
Simply put, you don't want to give them any more ammunition.
Being ready is the best way to end an audit quickly.
The auditor will see that you'll be able to back up any issues of your tax return with documentation if you're able to support all your claims.
Regardless of how heated the situation becomes, it's always best to be professional.
Of course, the IRS auditor has to treat you the same way.
Lying must be avoided at all costs.
Telling the truth can prevent many IRS problems.
Luckily, even if they don't understand their rights, their rights are still protected and should not be violated by the IRS during the course of the audit process.
In an audit process, the most essential right is the right to an explanation of what is going on and what's going to happen in the whole audit process.
You also have the right to be represented by a tax attorney, CPA, or enrolled agent, just like any legal proceedings.
It's your right to claim additional deductions that were unclaimed on your original tax return.
You also have the right to file a request to the national office of the IRS on a particular problem that may arise during your audit with your specific IRS agent.
Being aware of your rights ensures that you're treated justly by the IRS auditor and can make the process much seamless.
When you get your notification that you're being audited, there are some things you can do that can offer you a slight benefit over persons who don't know how to deal with an audit.
You can request postponement of your audit, for instance.
This way, you'll be able to refresh your memory about why your tax records were accomplished in the way that they were, as well as have enough time to gather financial documentation.
Another advise that must be followed by everyone who is going through an audit is to read IRS Publication 1.
This is the Taxpayer's Bill of Rights.
This booklet contains the basic rights provided to any US taxpayer.
It is also advised to meet with your counsel before the audit, whether you're being represented by a tax lawyer or a CPA.
This way, you can brainstorm for strategies on how to deal with the points brought up by the IRS auditor.
An essential tip is to only bring those documents which the audit notice has asked for to prevent a bigger IRS issue.
You don't want to bring or provide more details to the auditor than what the audit notice has outlined.
This will encourage the auditor to probe into areas that they initially were not going to delve into.
Simply put, you don't want to give them any more ammunition.
Being ready is the best way to end an audit quickly.
The auditor will see that you'll be able to back up any issues of your tax return with documentation if you're able to support all your claims.
Regardless of how heated the situation becomes, it's always best to be professional.
Of course, the IRS auditor has to treat you the same way.
Lying must be avoided at all costs.
Telling the truth can prevent many IRS problems.