When the Internal Revenue Service notifies you of an annual tax audit, you have no option but to appear for the tax audit. Yes, if you are not prepared for it, you can request an extension for the tax audit by explaining the reasonable causes. If the IRS accepts your extension request, only then you will be given an extension for your annual tax audit. Otherwise, you will have to appear for the tax audit at any cost whether or not you are prepared for it. In the notification email or post, you will find every single detail for your tax audit.
The IRS tax audit can be quite complicated, especially when you don’t have enough knowledge and understanding of dealing with the IRS tax matters. So, it is very important to learn how to smartly deal with the IRS officers so that you can come out as a winner.
In this guide, we have compiled a few very important tips that can help you smartly handle your tax audit and survive it eventually. Let’s take a look below.
Top Tips to Win Your IRS Tax Audit
Read the Notification Mail Carefully
When you get a notification mail for the annual tax audit from the Internal Revenue Service, make sure you read that very carefully. It is very important to rightly understand what the IRS actually wants to convey to you about your tax audit. There will be all the information about the venue of the audit, timings, appointed IRS auditors, account books and records you need to show, and other legal formalities you need to complete. This will help you nicely prepare yourself for the audit.
Be Always Prepared
Many individuals and profitable organizations leave their account books and records unorganized. They update their account books in the last days of the month or the financial year. This kind of approach often leads them into big trouble, especially during a tax audit. If you follow the same pattern, you need to improve it as you never know when the IRS can select you for the annual tax audit. Don’t wait for notification mail, rather get all your account books and record ready in advance. This will surely help you handle the IRS tax audit smoothly.
Consult a Tax Lawyer
When you receive an IRS tax audit notification email, consulting with a certified professional New York tax lawyer is always a good idea. It is so because tax lawyers know almost everything about the tax audit procedure and how to smartly deal with the IRS tax auditors. You can also give them the authority to represent your case on your behalf by completing the necessary legal formalities. They will interpret the tax law in your favor to maximize your benefits and minimize your losses. So, whenever you receive an IRS tax audit notification from the Internal Revenue Service, immediately approach a trusted and certified tax lawyer.
The IRS tax audits are such a test that can make anyone nervous, no matter whether you are a new taxpayer or an experienced taxpayer. So, it is very important to prepare yourself and be confident during the audit. If you are nervous, don’t show them that you are nervous as they may ask a lot of questions to you.
Be Brief As You Can
The IRS tax auditors are smart enough to catch any statement you give. So, try not to talk too much. If you talk too much, it might be possible you commit something that you should not commit. Be as brief as much as you can. Just responds to the queries of the IRS tax auditors.
If you have hired a tax lawyer or give him/her authority to represent your case on your behalf, take the back seat and let him/her deal with the IRS auditor. It will be a good option for you.
Stops the Auditors to Investigate Beyond the Initial Items Selected for The Tax Audit
The IRS auditors can ask you for that information that is not mentioned in the tax audit notification sent by the IRS. If they ask so, you will have to deny showing them until they have a grant for that. It is your right and you should utilize it.
Don’t Make Lie and Misleading Statements
Sometimes, the IRS auditors can test you by asking those questions whose answers they already have. So, avoid making lies and misleading statements as this can put you in big trouble.
Stick to Your Statement
The IRS auditors may repeat many questions to check whether or not you are firm on your statement. If you change your statement, the IRS auditors will certainly catch this and this may be troublesome for you. So, make sure you stick to your statement till the last.
Appeal the Audit If You Don’t Agree
If you disagree with the findings of the IRS auditors, you have the right to appeal the audit. For this, you must take professional assistance from a certified and experienced tax lawyer. He/she will surely help you with this.
So, these are the top tips you must follow before, during, and after your tax audit to come out as a winner. Apart from these tips, there are many things you need to take care of. You can learn about them by consulting with the IRS tax lawyers.
Lastly, we hope this piece of advice works for you whenever you face an IRS tax audit. For such more information and advice, keep in touch with us.