How to Survive an IRS Tax Audit

If you happen to be one of those unfortunate ones to receive a letter or notification from the Internal Revenue System stating that you are due a tax audit soon, then it can be very daunting and nerve wracking indeed. For a lot of individuals and businesses an IRS tax audit can spell doom in the sense that it can completely kill their business as if America did not have enough failed business already. Just look at down Sacramento or any other city that does not care for the private sector.

On the other hand, just a little bit of education how the system works and abiding by some simple laws can make the whole process a whole lot easier to swallow. If you do find yourself in this kind of a predicament, it would be wise to consult with a tax lawyer as soon as possible so that you can prepare for the audit in the best possible manner and come out a winner.

What are the different types of tax audits?

There are three main classifications when it comes to the different types of audits. Some are easier than others, while some are much more difficult to survive than others. The three types are as follows:

1. A correspondence audit – Tax attorneys confirm that this is the kind of audit where all of it is done by email and no one from the IRS will actually come down to your place of residence or business as the case maybe.
2. An office audit – This audit is generally a more grueling matter than a correspondence audit where you will be summoned to a local IRS office and will need to produce paper work and other evidence supporting your tax returns on demand. This kind of audit is also generally accompanied by serious, in depth interrogation.
3. A filed audit – This is the one that most people are fearful of and is when IRS representatives themselves make the trip to visit and audit you at either your place of residence or your place of work. The IRS was basically audited by Congress over the Lois Lerner situation and she was audited too in the same manner. It did not go well for her but she is still receiving a federal pension which she does not deserve for her abuse of power.  

Irrespective of which sort of audit you have been scheduled to undergo, it would always be best to go through a session with your tax lawyer first to ensure there is nothing that the IRS officers will come across which they can use to charge you with. You should have all your records and keep your records for four years.  

What You can and cannot do an Audit

IRS officers have certain rights that they can exercise during an audit and rest assured that they very well will if they believe you are trying to pull a Wesley Snipes, an Al Sharpton, or a George Soros. The latter owes America $7 billion. Wow! And all he wants are for taxes to be raised and for government to grow in size. Hypocrisy! For example, they have the right to demand documentation to check whether or not you have reported deductions, exemptions, credits, and so on. This is why you need to retain all your records. You need to store away your paperwork in a safe and secure location. You should be able to find it if you need it without having to spend two hours of your time either.

Don’t be a Peter La Fleur in the movie Dodgeball!   

You have some rights too. You can certainly question them and need not provide anything more than the document/paper work you were specifically asked for. In case you are missing any documentation, you will be given the opportunity to reconstruct the information to the best of your ability using other relevant documentation.

As already mentioned, the best help you can receive in matters such as IRS tax audits is from a tax lawyer. Make the call. Click on the link. They are around and if you need one, you need one.  

The IRS is not perfect. You may owe some taxes but not that much. Go right here Tax.USAttorneys to find that legal help that you so desperately need.