IRS AUDIT

Unless you have prepared your return with the intent to commit tax fraud or evasion, an IRS audit is not the end of the world.  And if you have unintentionally taken a deduction that you were not entitled to, the repercussions are relatively minor.

Audits are a lot like getting a colonoscopy.  They are not as bad as imagined.  In fact the preparation for both is worse than the procedure.  If you do get an IRS audit notice, it does not mean that you have done anything wrong that they are aware of.

Now with all that being said, it still is worthwhile to have a consultation with an expert in IRS audits to decide if you need representation.  You may want representation even if you don’t need it just to remove the anxiety and worry of dealing with an IRS auditor.  Remember that you have rights to protect you from the IRS process.  They include:

• A right to courteous treatment by the auditor
• A right to have all information that is disclosed in an audit to be kept confidential
• A right to know why and how the IRS is using information your provided
• A right to represent yourself or to have an representation
• A right to appeal the decisions of the auditor

A sophisticated IRS computer program chooses which returns will be audited in most cases. A score is assigned to each return and those with the highest score are selected.  Audits can be done through the mail or an in office interview.  It is important to keep your appointment or let the IRS auditor know if you cannot in advance.  Missing your appointment is a giant red flag and will lead to all of your deductions being disallowed unless quickly corrected.  You cannot file an amended return for the year you are being audited after you have received your audit notice.  If you need representation use a local IRS audit professional with specific audit expertise.