What To Do if You Get Audited by the IRS

If there’s one thing American taxpayers hate more than paying taxes, it’s being audited by the IRS. While your chances of an audit are slim (about 1% if you make less than $200,000), they do happen, so it’s best to be prepared just in case.

The tax professionals at American Investment Planners, LLC have decades of experience dealing with the IRS. Here’s what they say you should do in the event of an audit:

• Take a deep breath. Audits can be intimidating, but most of them are no big deal. Usually, an audit involves answering a few additional questions via mail; it’s rare to meet with an auditor in person.

• Figure out why you are being audited. Often, the IRS will only need additional information about one portion of your tax return, not the entire thing. Once you know why you are being audited, only provide the information the IRS specifically asks for. Supplying anything more risks the chance of broadening the audit scope.

• Gather your documents. Your audit letter should include a list of the documents you need. These may include:
• W-2s
• 1099s
• Bank statements
• Proof of income
• Investment statements
• Receipts and other proof of expenses

• Be polite and responsive. Like dealing with the police, much of the process is at the discretion of the auditor. If you are kind, polite, and accommodating, you will have a more pleasant experience than if you act like a jerk.

• Consider hiring a professional. You don’t have to show up to your audit alone. In fact, you may not have to show up at all. It’s recommended to bring a tax professional with you, or have one go in your place. If you choose the latter, you will need to submit IRS Form 2848.

American Investment Planners, LLC has been helping Americans file their tax returns for decades. To schedule an appointment with one of our tax professionals, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

American Investment Planners does not provide tax or legal advice. Consult with a qualified legal or tax professional regarding your particular situation.