Avoid These Mistakes When Facing an IRS Audit

As a taxpayer, you may face an audit if the IRS has questions about your tax filings. How you respond during the audit process will significantly impact the outcome of the audit. It is important for taxpayers to understand what actions not to take in order to reduce the risk of an unsatisfactory outcome.

6 Things Not to Do When the IRS Audits You

What actions should be avoided during the audit process? Here are six things you should definitely avoid:

  1. Do not show up late for your audit. Doing so will start your relationship with the IRS office off on the wrong foot. Show up on time in an effort to be respectful of the auditor’s time.
  2. Do not arrive without the information requested in the audit notice. If you took itemized deductions or claimed other deductions that served to reduce your tax liability, you have a legal obligation to be able to show that these deductions were legitimate. Before you attend the audit, it is important to review, compile, and organize copies of the records that support your tax filing. These records may include canceled checks, credit card statements, and receipts. Presenting the information in an organized fashion can make the auditor’s job easier and also help the process to run in a more efficient manner.
  3. Do not present a negative attitude towards the auditor. Doing so will create a more hostile relationship with the IRS officer, increasing the likelihood of an unfavorable outcome.
  4. Do not lie to the IRS auditor. Lying during the audit process will not work in your favor. In some cases, it may actually result in increased penalties or potential criminal prosecution.
  5. Do not guess when it comes to your answers to the auditor’s questions. If you do not know the answer to a question, simply state that as a response rather than taking a guess.
  6. Do not answer questions unless you are asked. It is important to remember that you are only required to provide the information that is requested of you. Volunteering additional information generally does not work in a taxpayer’s favor.

Were you contacted by the IRS regarding an audit? If so, we can help. We encourage you to contact us today for more information at 800.721.7054.

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