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Guiding You Through The Legal Process

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4 tips for preparing for an audit

On Behalf of | Jan 29, 2021 | Tax Audits

Going through an IRS audit is no one’s idea of a pleasant event. Nonetheless, it could happen to any Atlanta taxpayer, though only a relatively small number of taxpayers across the country are audited each year. If a person does face an audit, it is important to remember that going through this process does not mean that he or she is guilty of any wrongdoing.

To some, it may seem like going through an audit is like being put on trial. This analogy is not far off as the IRS will review evidence and determine whether a taxpayer has committed fraud or taken other illegal measures to get out of paying his or her applicable taxes. This also means that the taxpayer has the right to defend his or her innocence as part of the audit.

When dealing with this type of ordeal, it is important to prepare and know what to expect. Some ways that taxpayers can prepare include the following:

  • Have records that are neat and organized. If it appears that the taxpayer’s records are sloppy, that may give the IRS additional reason to be concerned.
  • Avoid thinking that the audit meeting will be full of contention. In some cases, an explanation of an issue or additional documentation is all that is needed.
  • Refrain from offering too much information, especially if unsolicited. A comment that the taxpayer may think is innocent could be a red flag to the auditor.
  • Remember that IRS agents can make mistakes too.

The severity of an audit can depend on the exact details involved in the situation. As a result, it is important that Atlanta residents thoroughly assess their circumstances and tax information to determine where an issue may have come from. Additionally, when facing dealings with the IRS, it may be wise to have legal assistance from professionals experienced in tax law.