Being audited by the IRS is a situation that often scares taxpayers. There’s certainly nothing enjoyable about being audited, but it’s important to understand what really happens in this process. In this blog, we will go over what happens in an IRS audit so that you can better understand the process and be prepared in case you ever find yourself in this situation.

The IRS audit process is a way for the government to ensure that taxpayers are accurately reporting their income, deductions, and credits. There are three main types of IRS audits: correspondence audits, office audits, and field audits. Correspondence audits are typically the least invasive type of audit, where the IRS will send a letter requesting additional information or clarification on specific items on your tax return. Office audits and field audits are more invasive and may require you to appear in person at an IRS office or have an IRS agent visit your home or place of business.

One of the most important things to keep in mind during an audit is to remain calm and cooperative. Ignoring an IRS audit notice or refusing to provide the requested information will only worsen the situation. It’s better to work with the IRS to provide the requested information, to avoid further complications.

During an audit, the IRS agent assigned to your case will review your tax return and ask questions about specific items. This is why it is essential to keep accurate records and have all your supporting documents organized and readily available. Your tax preparer can assist you in gathering the necessary documents and responding to any questions the IRS agent may have.

It’s also crucial to know your legal rights during the audit process. You have the right to representation during an IRS audit, and you can hire a tax attorney or tax professional to represent you. If you are not satisfied with the outcome of the audit, you have the right to appeal the decision.

An IRS audit is an intimidating situation that can cause a lot of stress and anxiety. However, it’s important to remember that it is not the end of the world. By staying calm, cooperating with the IRS, and having accurate records, you can navigate the audit process successfully. If you ever find yourself facing an IRS audit, don’t hesitate to call Master Plan Tax Solutions who can assist you through the process and potentially reduce the amount you need to pay. Remember, with the right mindset and assistance, you can overcome the difficulties of an IRS audit and come out with the best possible outcome.

Contact us today!