So, you’ve recently received notice that you’ve been
selected for a tax audit. Lucky you! In all seriousness, though, once you have
been chosen for an audit, there’s nothing you can do to change that fact. All
you can do from that point forward is to try and prepare for the audit.
First things first, you need to know what kind of audit
you’re facing. Possibilities include:
l Correspondence
Audits: requested when the IRS simply requires more information/proof related
to your tax return
l Taxpayer
Compliance Measurement Program Audit: The most serious type of audit in which
every part of your tax return must be backed up.
l Office
Audit: An audit conducted at a local tax office. Specific information will be
requested ahead of time.
l Field
Audit: An audit conducted at your home or office. Specific information may or
may not be requested ahead of time.
Once you know what type of audit you’re facing, tax audit
preparation is a lot easier. Your accountant will know, based on the type of
audit, what documents you need and how you need to get prepared. So, find out
from the IRS what type of audit you’re facing and then work with an accountant
to get ready. As long as you’ve been reasonably honest and accurate with your
tax dealings, you have nothing to worry about!