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!