What to do when you get audited

Just the word audit has the ability to throw. Read the notice carefully. Prepare the required documents. Submit your documents on time. Documents You May Need During a Tax Audit.

Whatever you do, don’t put off dealing with a tax audit. Instea take a deep breath , gather your paperwork , and contact a tax advisor you trust for advice on what to do next. It is possible that your entire audit can be dealt with via correspondence. This is the most common form of audit. Most people get an increased tax bill.

You sound like you are going to be one of those people. Correspondence Audit A Correspondence Audit is the simplest and easiest kind of audit that the IRS will do.

There are two different possibilities here. In that case, you are part of the fraud. In-office tax audits are necessary when the IRS needs a more detailed explanation than what a document or receipt can provide.

You also have the right to bring along an accountant or attorney for representation,. Usually, the audit will be for a return that you filed within the past two years. See all full list on turbotax. If necessary, you may contact the auditor’s manager.

Do you Need Representation? You probably need representation by a CPA or attorney. You took the “tennis court” deduction. Many small-business owners fret about taking a legitimate home-office deduction, but they shouldn’t.

What the IRS looks for is obvious deduction abuse, such as what’s known as the “tennis court” or “swimming pool” deduction. Conversely, you stand a higher chance of being audited if you manage to wipe out all or most of your income through the use of tax deductions. The Audit – Bring all the.

If you’re audite you can contact the service for assistance.

What to Expect if Your Tax Return Gets Audited Many people are scared of getting audited but have no idea what that really entails. Anytime you’re facing the prospect of an audit, the key to remember is you need to have solid documentation to back up any claims you make about your overall financial picture — particularly your deductions! After a tax audit is complete, you’ll get a notification of the result within days stating your charges, if any. You then have days to either appeal or accept the result. If you appeal, you will take your case to an IRS appeals agent who will then make a decision based on the facts of your case.

Does this mean you can always get away with cheating on your taxes? If your return looks strange, your chances of being audited go way up.