Written by One of marketers’ biggest fears is the threat of an audit. A tax auditor is about as fearsome as a dentist brandishing a drill bit preparing to inflict a root canal. The best thing you can do during an audit is remain calm and attempt not to give the IRS agent any reason to be more suspicious than the auditor alreadyinherently is. Understanding tax concepts can be helpful with the domaining tax guide.
Being audited does not actually mean you did anything inappropriate. The IRS could simply desire to verify some receipts or other supporting information included on your tax return. This type of tax audit, known as a correspondence audit, is the most routine type of audit. It’s also the easiest type of review – if there is such a thing.
If your return is getting audited, the Internal Revenue Service will let you know the exact sections of your tax return that will be covered. This allows the audit process to be easier for you, since you will identify an excellent focus of the documentation you need to prepare.
When you get an audit notice, you need to determine whether you want to handle the audit yourself or whether you need to engage the services of a tax advisor. The absolute value to hiring a professional to represent you is that you have professional assistance through the review process.
You may desire to handle the exam yourself if you normally handle your own tax return and if you feel comfortable going through the audit by yourself. The financial component of the review might also have an impact on whether or not you retain a tax advisor. For example, if the tax due that you could end up owing the Internal Revenue Service is less than what it would cost to retain a tax advisor, potentially you should cut eliminate the cost of the advisor and represent yourself.
Figure out whether you are going to hire a tax advisor or represent yourself as quickly as possible so you have time to get ready for the review. If you are representing yourself, then you will want to start locating the documentation together as soon as possible. Delaying until the evening before the review will only cause more frustration. For something as serious as a tax audit, you need to be as well prepared as can be.
In the tax review, only talk about the sections of the tax return that are under review. Volunteering unrequested details will lead to additional exams. Which, you don’t want.
