Have you recently received notice that the IRS is auditing your tax return? There are steps that you can take to help minimize or eliminate IRS adjustments to your returns.

Once you have received notice that the IRS is auditing your return(s), you should seek the assistance of a CPA or Tax Attorney right away. Audits generally require a large amount of data compiling and technical communication with the IRS. These are things best handled by a CPA or Tax Attorney. As a taxpayer, you are entitled to representation and are generally not required to meet directly with the auditor.

The audit letter should contain a list of items that the IRS is auditing. As the taxpayer, it is your responsibility to provide documentation supporting the items claimed on your return. Once you have the list of items that the auditor is looking for, you (or your CPA or Tax Attorney) need to start compiling the documentation to support each item. BE ORGANIZED! You will have much better results if you provide the IRS with organized and compiled data, instead of just providing them with a box of random receipts or documentation.

Generally, you should only provide the auditor with the information requested. However, if as you are going through your documentation you realize that you omitted a potential deduction from your return, you can also provide this information to the auditor to have that item added to the return.

When dealing with an auditor, it is important to remain courteous and professional at all times. As audits are generally very emotional and frustrating for taxpayers, this is another reason that you should seek the assistance of a CPA or Tax Attorney. Becoming hostile or unresponsive to an auditor can have a seriously negative impact on your audit. It is also important to remember that auditors are not your friend. Although you may not realize it, many of their questions are intended to elicit additional information that may be used against you in your audit.

IRS Tax audits are a serious event and if not handled properly can result in huge amounts of additional tax and penalties being assessed against a taxpayer. If you receive an audit notice, immediately contact a CPA or Tax Attorney for assistance in handling the audit.