IRS Audit Goals - What Can You Do to Prevent Being "Taken to the Cleaners" in an IRS Audit?

You have just received notice that you are beingmortgage, property tax, donations, etc.
audited by the IRS. Great, now the IRS is going to beIt may take you awhile to get all these documents
digging into your financial affairs. If you thought you hadgathered especially if you have to request some of
IRS Problems before, now you know you do.them from many different institutions so do not wait
Your first step is to read the notice. Find out exactlyuntil just before the audit to start getting organized.
what the IRS wants, which year they are auditing,During the audit, answer the auditor's questions
what kind of audit they are performing, and whathonestly but never talk too much. Auditors are aware
documentation they require you to bring to the audit.that this can happen if you are nervous. Consider using
Also, take note of the date you need to reply to thethe following statements when answering questions:
IRS by. You are typically given 30 days to respond.Yes; No; I don't recall; I'll have to check on that; What
Your number one goal during an audit is to only providespecifically do you want to see? and Why do you
the information pertaining to the specific year andwant to know?
documentation being audited. You do not want toPresent only the documentation requested on the IRS
disclose any unnecessary details that would alert thenotice. Do not bring anything else with you. If questions
IRS to investigate you more.arise concerning a different tax year or regarding
To help you support the information you supplied ondocumentation not requested on the IRS notice, you
your tax return you will need to gather together thecan simply state that this information is at home.
following documents for the year being audited:o BankIf you agree with the results of the audit, pay the extra
statementso Your cancelled checkso Receipts for thetaxes and consider your IRS Problems solved. If you
deductions claimed on the tax returno Incomedo not agree with the results, you have a right to
statement reporto Payment verifications for yourrequest an appeal.