Facing an IRS Audit

Everyone dreads the thought of being audited - of having their taxes gone over with a fine-tooth comb by the IRS. Unfortunately, though, audits do happen, and they can happen to just about anyone. If you do get the dreaded news that you’ve been chosen for an audit (lucky you, right?), it’s important that you do the right things to avoid further trouble.

Step #1: Check it Out

Before you panic or start trying to find all your tax information, take a deep breath and make sure the audit is for real. Sadly, a lot of fraudsters are adept at getting your personal information by claiming to be conducting an audit. An audit is only the real deal if the notice comes from the IRS in the form of a typed, official letter. Even then, it’s a good idea to contact the IRS or your tax advisor to make sure it’s legit- definitely check it out before handing over any tax or personal information!

Step #2: Gather Your Materials

If it does turn out that the audit is for real, your next step should be to carefully read the audit letter and then to gather all the forms it asks of you. Having these ready to go at the time of the audit will help things to go a lot more smoothly. More often than not, audits are being made as the result of a simple error, and providing the right information and getting the error sorted out may be all it takes to get life back to normal and the audit over with. Just do as the IRS asks to the best of your ability, and as long as you haven’t outright and obviously lied, you should be okay.

Step #3: Get Help!

Finally, don’t hesitate to ask for professional help if, at any point during the audit, you start to feel overwhelmed or confused. Professionals have dealt with the IRS before and can provide comfort, assurance, and advice during this troubling time. As long as you get the right help, if needed, and do what is asked of you, everything should be okay!

Friday, December 4, 2015