What to prepare for an IRS audit

For most people, fixing information on a tax return is the purpose of their IRS audit. Texas residents have a right to prepare for a tax audit, which is often based on the 30-day window you and the IRS have to respond to the other. Here are some things to know if you’re preparing for an IRS audit.

Avoiding self-representation

You don’t have to be audited without representation. In fact, you don’t need to appear before an IRS auditor. In U.S. tax law, you have the right to use a legal or financial representative for your entire case. You should avoid self-representation if you’re unsure of what’s being claimed.

Filing accurately, professionally and honestly

No one can foresee the IRS’s need to request an audit, so filing properly is always important. Along with your past tax filings, organize your new returns so that you can quickly access them later on. The data you file must be accounted for through confirming documents. Spreadsheets, bank and cash flow statements should align to support your tax filings. Here are some things to manage once the IRS gives you the notice of an audit:

  • Bills
  • Receipts
  • Tax returns
  • Pay stubs
  • Financial portfolios

Backtracking for the year in question

The IRS asks for information or schedules an audit for a specific filing you made. It may be an issue stemming from many years. However, a single filing gives you and the IRS something to collate. Preparation, therefore, calls for you to collect data from a specific time. You’ll need to investigate that time and what you did or didn’t do financially.

When you receive an audit notice, remain calm and cordial. The IRS doesn’t charge you as a tax criminal without performing an audit first. Simply find out the data in question, and then work to gather or clarify it with the IRS.