How To Prepare For Tax Audit? Most people don’t know how to prepare for an IRS tax audit as it’s a stressful event. Receiving such a notice from the government is hard enough, but you shouldn’t worry about the end of the world if you have your paperwork in order.Fortunately, audits are sometimes simple procedural affairs that can be easily answered by mail. Read the notice carefully. Some audits involve only parts of a single year’s tax return, while others can include entire returns for multiple years.
In addition, some audits request information by mail, while others require a meeting with an IRS agent. Understanding what the IRS is asking for is vital to ensure that you prepare precisely for the specified audit. You will need plenty of time to pull your information together, to request information from others, such as charities, credit card companies, and banks and to work with a tax professional.
The tax codes are extremely complex, and require years of study to fully comprehend. It’s best to take the advice of professionals when responding to an audit. They can tell you what the audit means, what the consequences might be, and the exact information you will need to provide.
Hopefully, you stored all of the relevant receipts and other information when you filed your tax return, and so you will have an easy time of creating copies in preparation for the audit. If not, then you will need to locate all of the required information. Organize and put everything in proper order.
If your audit is in person, either you or your tax professional can represent you to the IRS agent. If you are not required to be at the appointment, have your professional attend alone with a power of attorney.
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