Getting into trouble with the IRS can be daunting for any taxpayer. An audit is something that can give you a great deal of stress, even if you have done nothing to deserve one. It is important to understand that audit notices are not meant only for people who intentionally evade taxes. Something as minor as errors and numerical discrepancies can get you in trouble. Still, an IRS notice has to be dealt with properly to resolve things, whatever the reason for getting one may be. Being aware of the right way to handle things can make all the difference. Here are some effective tips you can follow to survive an audit.
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For many taxpayers, the idea of an audit is cataclysmic. Nothing else strikes such fear into the heart of the average taxpayer. You might be conjuring up images of men in suits ready to put you in cuffs and haul you away for fraudulent returns, but you’re most likely worrying too much. While a tax audit is a serious situation, there are many things you can do to prepare yourself for the event and defend yourself against the IRS. If you’ve been honest and accurate in filing your taxes, then you shouldn’t have to worry at all. Whatever your case may be, start preparing as quickly as possible to get through your audit successfully.
First of all, you need to understand that audits are not sent out instantaneously. In most cases, there will be a significant delay in between your filing and your audit–often, a delay of several years. There is a general statute of limitations of three years for tax audits, but this can be extended under certain circumstances. What this means is that you should be hanging on to your tax records for at least three years after filing. You’ll need those documents to defend yourself throughout the auditing process, so make sure they’re on hand and organized.