Navigating an IRS Audit: What Every Taxpayer Should Know

Receiving a notice from the Internal Revenue Service (IRS) that you’re being audited can be an alarming experience, triggering anxiety and uncertainty. However, it’s crucial to approach this situation with a level head and take the necessary steps to ensure a smooth resolution. In this article, we’ll guide you through the key actions you should take if you find yourself facing an IRS audit.

Don’t Panic, Understand the Audit Notice

The first and most important step is to carefully read the audit notice. The IRS typically provides detailed information about the specific issues under review and the documentation they require. Understanding the nature of the audit is essential for an effective response.

Gather Relevant Documents

Start collecting all relevant documents related to the audit. This may include income statements, receipts, bank statements, and any other documentation that supports your reported income and deductions.

Respond Promptly

Time is of the essence when dealing with an IRS audit. Respond to the audit notice within the specified timeframe, and if you need additional time, communicate with the IRS to request an extension. Failure to respond promptly may lead to more severe consequences.

Consider Professional Assistance

While you have the option to represent yourself during an audit, seeking professional help, especially from a tax attorney, can be immensely beneficial. Tax laws are complex, and an experienced attorney can navigate the intricacies of the audit process, ensuring that your rights are protected and that you present the strongest case possible.
A tax attorney can also serve as a buffer between you and the IRS, handling communication on your behalf and shielding you from potential stress and pressure. Their expertise can be particularly valuable if the audit involves legal issues or if you anticipate a dispute with the IRS.

Understand Your Rights

As a taxpayer, you have rights during an audit. Familiarize yourself with these rights, which are outlined in the IRS’s “Taxpayer Bill of Rights.” Understanding your rights can empower you to assert yourself appropriately and ensure a fair and just outcome.

Conclusion

Facing an IRS audit may be intimidating, but by taking proactive steps, gathering the necessary documentation, and seeking professional guidance when needed, you can navigate the process with confidence. Consulting with a tax attorney can be a strategic decision, providing you with the expertise and advocacy necessary to protect your interests and achieve a favorable resolution. Remember, timely and transparent cooperation with the IRS is key to resolving the audit efficiently and minimizing potential consequences.

Attorney Kelly Swartz advises individuals and businesses on the optimal tax treatment for agreements, transactions, and planning opportunities that may affect them. Despite the complexity of tax, she works with clients to give them a plain language explanation, providing clear direction in the client’s best interest to resolve tax audits and controversial cases. If you receive a notice from the IRS contact Kelly Swartz to learn more about your options at 321-341-5144 or kelly@uslegalteam.com.