What To Do In Preparation For A Tax Audit?
You have just been informed that the Internal Revenue Service (IRS) would like to audit your latest tax return. Naturally, you feel a range of emotions, including disbelief, fear, and frustration. However, knowing what the audit process involves may give you the confidence you need to effectively navigate this process from start to finish.
Here is what you need to do successfully prepare for a tax audit, according to the latest audit defense reviews.
First, note that if the IRS has chosen to audit you, the agency will generally get in touch with you by mail, according to recent tax audit reviews. The IRS will tell you the specific information it wishes to examine. It will also let you know what supplementary documentation you might need to submit to the agency.
Next, you’ll need to provide the IRS with a response within 30 days. You’ll also need to start gathering your paperwork right away, as a close examination of your documents will be enough to tell you how large of a problem you may have and if hiring representation would be in your best interest as a result. For instance, if you have a discrepancy in your return, a tax audit defense expert can help you to pinpoint it and then tackle it in the best manner possible.
The documents you collect may include your mortgage statements for your home, receipts, prior tax returns, and brokerage statements. You also may need to collect pay stubs and records pertaining to your retirement accounts. Be sure to create copies of these documents to give to the IRS, rather than sending the government the originals. Also, verify that the documents you are gathering are for the tax year that the IRS is investigating.
Furthermore, organize the paperwork so that important pieces of information can easily be retrieved at any time during the audit.
Need more tips? This short video can offer you some pointers: