How to Handle an IRS Audit

Receiving notice of an IRS audit can be unsettling, but knowing how to handle the process can help you stay calm and in control. Here’s what you need to know if you’re selected for an audit:

Understand the Audit Notice: The IRS will send a notice explaining the reason for the audit and the documents they require. Read the notice carefully to understand what is being questioned.

Gather Your Documents: Start by collecting the documents requested by the IRS. This may include tax returns, receipts, bank statements, and any other records that support your tax filings.

Consult a Tax Professional: It’s highly recommended to seek the help of a tax professional if you’re facing an audit. They can help you navigate the process, communicate with the IRS, and ensure that your rights are protected.

Respond Promptly: Respond to the audit notice within the specified time frame. Delaying your response can result in additional penalties or interest.

Be Honest and Cooperative: During the audit, be honest and cooperative with the IRS agent. Provide the information requested, but avoid volunteering additional information that could complicate your situation.

Know Your Rights: You have rights during an audit, including the right to representation and the right to appeal the IRS’s findings. If you disagree with the outcome, you can challenge it through the IRS appeals process.

Keep Detailed Records: Throughout the audit process, keep detailed records of all communications with the IRS, including copies of documents sent and received. This will help you track the audit’s progress and protect your interests.

An IRS audit can be intimidating, but understanding what to expect and how to respond can help you manage the process effectively. With the proper preparation and the expert guidance of Peggy's Family Tax Service, you can navigate the audit with confidence and resolve any issues that arise.