How to Survive a Tax Audit

Be Ready and Forthcoming

Be proactive by documenting comprehensive tax records that can prove all deductions, credits and exemptions. The IRS' can go back seven years. To eradicate the paper litter, make your records digital delete and then shred the originals. First and foremost, resist the desire to cheat on your taxes. An honest return may not stop an audit, but it is less complicated to defend.

Understand that Audits can Happen to Anybody

You may have no idea what triggered your audit, but knowing it can happen to anyone will keep you well prepared. The most common trigger is not reporting something on your tax return that was reported to the IRS' by a third party. The IRS looks for certain triggers where they know reports are being filed dishonestly. These include earned income, education and child tax credits. Other things that can trigger an audit are big deductions, mathematical errors and under-stated income.

Get Representation

Even if you file your own taxes, you are entitled to representation by a trustworthy company. Despite the price, the professional fees will most likely be less than the interest or penalties expected from the IRS. Not all tax resolution firms have experience working with the IRS, so taxpayers are encouraged to do their research.

Don't be Bullheaded

It may be tempting to try to make the field agent's life as frustrating as they've made yours, but this approach will usually backfire.

Demonstrate your Right to Appeal

Remember that even the IRS is fallible. You do not have to accept delete the IRS conclusions delete. You can hire professional help that will negotiate and solve your IRS problems. Within the IRS, notices can be negotiated.


The Importance of Preparation

Although nobody jumps for joy at the possibility of an audit, there is nothing to be gained by sweating it out. You can reduce the headache of the process by getting organized, getting help where you need it and knowing your taxpayer rights