Audited by the IRS? Don’t Panic
When you’re notified that you’re going to be audited by the IRS, it’s natural to panic. While all of your finances may be in order, the idea of enduring an IRS examination can still be stressful. You might immediately think – particularly if your books are clean – that there should be an IRS audit reconsideration. The reality, though, is that if you know what to expect and you’ve got nothing to hide, there’s nothing to fear.
A Preliminary Audit Defense
Knowledge is your first, best defense when it comes to dealing with the IRS audit process. You should know that you’ll be notified of your audit by mail or phone. When actually scheduling your audit, IRS officials may wish to meet with you in person at home or perhaps at work. In some cases, an IRS audit letter will inform you that your interview will be conducted over the phone.
Regardless of the time and place of your tax audit, procedure is dictated by information that the IRS has to go on prior to speaking to you. For instance, your audit by the IRS may be the result of under-reported revenue, or perhaps a variance from what you and your employer submitted as taxable income. Whatever the case may be, you’ll be informed what documentation you need to have ready in advance.
Timeframes and Conclusions
The duration of the IRS audit process can vary, depending on the specifics of your case. Much of the time leading up to the actual audit will depend on aligning your schedule with that of the examiner’s. It’s definitely in your best interest to be as flexible as possible, treating your audit with the utmost urgency.
Don’t be reluctant to schedule your examination because you’re convinced the outcome will be against you. You might think that when you hear the words “tax” or “audit”, they mean the same thing: you’re going to owe money. Not so. Bottom line, the IRS has mismatched information that you’re in a position to correct. All you need to do is provide the documentation that supports your case which, if you’ve been accurate in your filing, shouldn’t be a problem.
On the other hand, getting audited by the IRS can present a certain amount of justifiable concern. If there is any slight financial detail that doesn’t coincide with what you’ve reported, it will come forth during your IRS tax audit. It’s an excellent idea to thoroughly review your documentation prior to your examination or, even better, consult with a licensed tax professional.
Find a Professional Familiar with Audit Procedures
You may be well-equipped to handle an IRS audit on your own, but it never hurts to get a second opinion. A licensed tax professional can offer you a no-cost obligation to discuss your audit and how you should best prepare. If necessary, a licensed tax professional from the Tax Defense Network can help you during your audit – or help during an appeal. You may think that you can’t afford such professional assistance but, when it comes to your taxes, you really can’t afford to take any chances.