To start with, facing an IRS Tax Audit without a lawyer just isn’t something I recommend you do. That said, I at all times get people who ask me what to do if they’re audited and have no lawyer. So, avoiding the judgment that these people are about to have a fool for a shopper, listed below are some suggestions that I can offer.
Do not speak till spoken to. Take this axiom for children to heart. Don’t reply an auditor’s query earlier than it is asked. Remark solely upon the subject material that you’re requested to comment on. Don’t offer anything up.
Do not bring any documents to the audit until they are expressly requested within the audit notification. It does not matter in the event you assume the auditors will need it, or not. If they find out that they missed asking for a doc, they might be more likely to skip it.
Make certain that the information you bring are nicely organized. Auditors look for an organized taxpayer. They believe that organization is a sign that you simply care about your scenario and that you are keen to be cooperative. This will win you just a few invaluable points with the auditor.
Assessment your paperwork and information thoroughly, previous to your audit. If something is lacking, secure copies of the document or record. If you happen to simply tell the auditor that the report or doc is missing, they are going to, at finest, tell you to obtain one other copy. They could, at worst, deny the doc or file altogether. Yes, they will try this, as a result of it’s your obligation to supply the information they request.
Learn the Taxpayer’s Invoice of Rights, IRS publication1, earlier than your audit. Know your rights and stand sturdy on them.
When you feel the audit goes poorly, as for a break as a way to seek the advice of a professional.
If the topic of tax fraud comes up throughout your audit, demand the precise to consult an lawyer immediately.
If the auditor harasses you or treats you unfairly, ask to talk with the auditor’s manager.
Don’t be afraid to attraction the results. If you happen to really feel the audit is wrong, set up a meeting with the auditor’s manager and attempt to reach an agreement. If you happen to cannot attain an settlement, you may appeal the results within the IRS itself or go to tax court.
Lastly, please rethink, and rent a tax lawyer. When dealing with an IRS Tax Audit, having counsel is just the easiest way to go.