How To Prepare For Tax Audit – An audit from the United States Treasurer, or Internet Revenue Service (IRS), can be very intimidating. Here’s a few tips on how to prepare for such a lifetime experience. The initial approach is usually a certified letter that you have to sign with a question about a specific year that you filed. It’s usually called FORM 11652.
The form is a questionnaire and learning how to get all of your paperwork in order can be a really stressful time. This is why people should not cheat the IRS because new technology is being used on all annual returns that do raise flags. When that happens, a letter or FORM 11652 is sent out immediately about the discrepancy, and it’s serious business for the government because it usually involves a penalty.
If you have all of your paperwork in order, then you have every reason to relax, and can take this experience as a learning curve.
It is not the end of the world if you receive such a an IRS audit notification. They are asking for proof about something that might not even be your fault. This is why you save your receipts and all other paperwork for seven years.
The task to prepare for this government notification can sometimes be a simple procedure that can be answered by mail using IRS Form 11652. Some notifications involve only parts of a single year’s tax return, while others can include entire returns for multiple years, but we’ll make a few suggestions. Don’t look at it as a problem.
Answer the tax audit questions with honesty. This is the time to tell the IRS if you made a mistake. If so, hire an accountant right away and ask them to teach you how to fix it and learn from it.
You need to file an “Amended Tax Return” to prepare and correct the mistake. You will have to pay a fine and probably a penalty, which is usually 10 to 15 percent. Never ignore the IRS because if you let them fix the problems you will be paying a lot more.