Watch Related Videos
comments
Many people dread having an income tax audit. Even though the chances of an IRS tax audit are limited if you report all of the required information to the best of your ability, it is important to know what to do if you are ever confronted with an audit.
Surviving the Audit
The first thing that you should do is respond within thirty days. You can request more time to prepare for your audit, however you should never ignore an income tax audit notice. This is because your tax liability can be automatically adjusted if the IRS does not receive a response.
The second thing that you should do is get your records neat and in order. If you did not prepare the audit yourself, you should contact your tax professional. If you do not wish to face the IRS alone, you can have someone represent you.
It is best that you don't have the audit on your property. Only bring the information related to the tax year in question. Remember that you can replace missing records, such as receipts.
While the audit is going on, don't volunteer any information. That is, if the IRS agent doesn't ask, don't tell them.
Knowing your rights
The IRS Publication 1 contains a list of your rights as a taxpayer. Be sure to download it from www.irs.gov prior to the audit. Just click "Help" then "Forms and Publications" and search "Publications."
It is likely that you will owe at least some money at the end of your audit. If you disagree with the results of your audit, you can appeal.
How to Satisfy an Income Tax Audit
