What Do I Do If I Get Audited by the IRS?
If you have been targeted by an IRS tax audit, you may be wondering, "What do I do if I get audited?" It is best to hire a tax lawyer to represent you. You may also want to consider mediation, which can resolve your audit dispute in sixty days. If you are audited, avoid volunteering information that you haven't requested. Respond to questions as honestly and concisely as possible.
The first thing you should do is confirm whether or not you are being audited by the IRS. If you have received a letter stating that your account is under audit, it means that an IRS official has found a mistake on your tax return. An audit can be stressful and time-consuming, so you should start immediately collecting documents and exhibits that relate to the audit request. It is also important to understand that you may not be the subject of the audit, and the IRS may be investigating your employer.
You should avoid providing the auditor with copies of your tax returns from other years. This is because they might make adjustments to your return based on the information they obtain from the documents you provided. You should also avoid bringing any documents that were not requested in the audit notice. In case you are unable to bring any of the requested documents, you can reconstruct them and show them your records. To impress the auditor, make sure all of your records are organized before the audit.
Before you panic and begin preparing for an audit, remember that you are not alone. Many high-income individuals and small business owners face audits by the IRS, and the first step is to protect your assets and business. An audit will allow you to make informed decisions and avoid unnecessary delays. You can prepare your financial documents well and make sure you are not missing any documents that are required.
Hiring a tax attorney is essential if you are faced with an audit. Not only will a tax attorney help you navigate the tax law system, but they will also protect your rights. An audit is a stressful situation and it's better to hire someone who understands the process and will represent you before the IRS. It can be an overwhelming time, but it's the only way to protect your rights and the legal position of your business.
Hiring a lawyer is also a good idea if you are being investigated by the IRS. Not only will they be able to represent your interests, but they will also be able to write correspondence that addresses any concerns or questions. Hiring a lawyer is an important move to make, and it will help you complete the audit in a timely fashion. When you have an audit, you must act fast.
Depending on the type of audit you get, it will vary. An audit can either be correspondence or in-person. For correspondence audits, you will need to provide documentation via mail or answer questions in written form. An audit in person, on the other hand, will involve a face-to-face interview with an IRS auditor. For these types of audits, the IRS requires specific documents to verify your tax status.