Tips for surviving an Audit

An Audit can be very difficult. Here are some simple steps to surviving an audit.

What to do – In an audit, the first thing is you must convince the IRS that you have reported all of your income and were entitled to any exemptions, credits and deductions that are credited.

When to delay – Postponing the audit normally works towards your advantage. Whenever you feel like you need, request for more time to get your records in order, or for any reason. Just ask for more time.

Don’t host the IRS – Never ever let the IRS hold the audit at your business or home. Better go to the IRS or have your tax professional handle it. Audits at your place (field audits) are mainly used when there us business income. If such is the case, consult a tax professional before hosting a field audit. There are many firms who have tax professional for their service like CPA Firms Inland Empire.

Prepare your records – If there are some missing documents like receipts etc., you are allowed to reconstruct records.

Manage your expectations – Do not expect to come out of an audit without owing something. The odds are already against you.Do not try to compromise on the amount of taxes to be paid. Though, you must negotiate the tax issues, with the auditor. Consult accounting firms inland empire to know how you can pay the taxes, with ease.

Do not answer, unless asked – Never give the auditor more information, than they are entitled to. And do not talk anymore during the audit than when it is absolutely necessary.

Read – Using the free IRS publications and commercial taxes guides, research tax legal issues. If you still feel unclear about tax laws or how to present documents to the auditor, always consult a tax professional before the audit.

Know your rights – Browse IRS publications, explaining the Taxpayer’s Bill of Rights, before going to an audit. If your audit is not going according to your plan or is not going well, ask for a recess and consult a professional. If you feel like the auditor is treating you unfairly, ask to speak to the auditor’s manager.

Time is on your side – The IRS has to complete the audit within the period of three years of the time the tax return is filed. Unless, they find a tax fraud or a significant under reporting of your income.

 

The audit is never easy. But hiring a professional company or a certified public accountant can provide a lot of help. Oscar H. Gamez is one such certified public accountant, and can be reached at Oscargamezcpa.com. Consult audit firms Inland Empireand hire services for your betterment and benefit.