How Audit Tips Can Help Your IRS Problems

If you have IRS problems, one piece of mail you do not want to get is a notice saying that you are being audited. Don't be alarmed if you get one. You can breeze through your audit and leave your issues behind with these tips:

• You'll receive a bill next time if you don't reply to the notice in a certain amount of time, typically 30 days.
  
  
• The items and documentation you need to prepare will be on the notice so follow the directions provided.
  
  
• Organize the documents required for the audit to save you and the auditor time.
  
  
• Records missing? If you determine that some records are missing, ask for duplicates now! Having missing documentation will delay the process. You'll need records to support your case. The auditor will not get the records for you. This is your responsibility.
  
  
• Only bring the requested records to the audit. Extra documents shouldn't be brought to the audit. If they ask something that was not requested, tell them that it's at home. Hopefully, they will drop the issue.
  
  
• It won't help your situation if you attend the audit angry. Be calm.If you are courteous and polite, the audit is a piece of cake and the auditor will be more likely to see things your way.
  
  
• Don't bring original documents.Present duplicates of the documents to the auditor. If you give the originals to the auditor and they get lost, there's nothing you can do to get them back. Ask the auditor to make copies for you. Take the originals with you after the audit.
  
  
• Keep what you say at a minimum. If possible, only reply with a "yes" or a "no". You provide the auditor a reason to require more documentation if you provide unnecessary information. For example, if you have just purchased a new car or a home, it might be an indication that you've increased your income. You might be investigated further.
  
  
• Know your rights.As a taxpayer, you do have rights. It's best to settle at the audit, but you have the right to an appeal, if needed.