Every American citizen is required to report income tax returns to a government agency known as the Internal Revenue Service, known to many as the IRS. In many instances, the IRS reviews an individual’s information and accepts their payment or remits refunds as dictated by the computations illustrated in the returns.
However, in certain cases, the agency wishes to review such returns more thoroughly. This more extensive review is called an audit. Individuals subjected to an audit are encouraged to adhere to the following tips:
Refrain From Panicking
The phrase “being audited” often precipitates extreme fear. In certain cases, the IRS mandates audits after reviewing tax returns agency officials opine are suspect or subject to potential criminal activity. However, individuals who are audited should not automatically jump to such conclusions. Tax experts advise those facing this circumstance to remain calm and discuss the situation with a licensed and experienced accounting or financial professional.
Provide As Much Documentation As Possible
Sometimes audits occur because IRS officials make mistakes or overlook important pieces of information. Individuals who receive audit mandates are strongly advised to gather every bit of tax or financial documentation they can find and submit this material to the national taxing authority. Financial statements can contain significant amounts of data that might not always be easy to interpret. However, with careful review, discrepancies can be cleared up.
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Murry Englard CPA 