Uh oh…What If I Get Audited?

What if you get audited? First things first, DON’T PANIC. Panicking does not help. There is not a one-size-fits-all approach to being audited. Here are a few tips to get you started:

Read Your Audit Notice – What If I Get Audited?

Get informed. Why are you being audited? Do not be afraid to ask questions. Is there a difference between what was reported on your W2 and what you filed? It could be an automatic flag. Such as a threshold the IRS has set up to identify errors or oddities. It may just be random. There is a number in the upper right hand corner of your notice. This number will help you identify some specifics. This will lead you in the right direction for moving forward.

Understand Which Type Of Audit – What If I Get Audited?

There are different types of audits. Knowing the type will help you identify your next steps. It may be a correspondence audit. They may request specific checks or receipts relating to one part of your return. An office audit is when you would have to attend a meeting at a local IRS office. A field audit is when an IRS agent comes to your place of business to conduct the audit. The most intense audit is a Taxpayer Compliance Measurement Program audit. This type of audit will go over every line item and generally require documentation for most, if not all, that you reported.

Go Over Your Documents – What If I Get Audited?

Now that you know the reason and type of your audit you should gather all of your records that pertain to the audit. Make a copy of everything. Never send in the original. Organize everything according to what they ask for. Do not give more than what they ask for. Good organization goes a long way in showing you are prepared and serious.

Contact The Right Tax Professionals – What If I Get Audited?

We can help you prepare. Give us a call and we can answer your questions. We can also refer you to a great tax lawyer. For field audits and TCMP audits, it is a good idea to have a tax lawyer present while the audit is conducted.

Having your taxes prepared accurately in the first place is the best way to avoid an audit with negative consequences. If you have reported things correctly and kept great records, there is much less to worry about.