What to Do If You Get Audited?

What to Do If You Get Audited?

Regrettably, there still are unlucky taxpayers that ended up getting audited.

Most of the audits are just a message from the IRS asking for more data about your tax returns, and you’re requested to send back forms verifying your income or reductions. In different circumstances, you’ll receive an appeal to meet with an attorney to review your tax forms, a situation that sends many taxpayers into a frenzy. We are here to break it to you that if you use a Certified IRS tax settlement company, there’s no need to fear, but there are specific actions you should take.

After receiving the audit neglecting the IRS is the most negative possible thing, the taxpayer can do. The circumstances won't go away.

It's the best option that the taxpayer should communicate back to the IRS as soon as possible. If you are utilizing an audit representative, ask for more chances to collect the documents and forms. A two-week extension is not an extreme request of your IRS agent.

Most of the time, the taxpayer's message in the letter is just a mere request for data – the IRS requires the taxpayer to send in the 1099 form, for example, or they need to see releases for the company grains the taxpayer deducted. In that case, just giving in the demanded paperwork is usually enough—there’s no requirement to get an agent or analyst concerned.

The taxpayer wants to grant attorney power to the audit representative to manage everything while he/she stays home.

You might think that taking in a licensed firm that deals with audit representation will irritate the IRS agent or make him or her believe you are guilty – but the fact is that it will do quite the opposite. The IRS agent will usually favor dealing with a lawyer because a lawyer will provide the demanded information convenient for the agent to read and will do so dispassionately and professionally.

Only a few audits are casual; the rest of the time, the IRS has really particular issues it wants to be addressed and will demand forms and releases, respectively.

This means a couple of things: Post or take all the forms that are asked to bring, and explain all the issues to the best of the knowledge.

That second point is essential. Whereas keeping the mouth sealed is usually the ideal if you're getting questioned by the FBI, in an audit, it's in the taxpayer's best interest to state the case and answer all of the agent's inquiries.

Once the audit is completed, the agency will evaluate any taxes and penalties that the taxpayer owes. Still, the taxpayer can always appeal the assessment. The IRS may be ready to cut the taxpayer an IRS tax debt settlement that will satisfy the taxpayer because the IRS doesn't want the situation to drag on. This is a different time where the IRS funds to have good audit representation from an attorney experienced with tax negotiation.