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A checklist to prep you for an IRS audit

On Behalf of | Sep 20, 2021 | Tax Debt |

In every audit requested by the Internal Revenue Service, individuals have no more than 30 days to respond. Tax law is time-sensitive at times, so preparation is important for residents of Washington. Getting an auditing notice from the IRS has become more common, but don’t assume the worst if an audit is requested for your tax filings. Here’s what you can do before determining your need for representation.

Collecting all of the paperwork

The exact documents you need are first requested by the IRS. The additional receipts and invoices you present help to build a case. Even more, searching your personal files might reveal an error you made that the IRS is questioning. Always present the necessary paperwork in the form of copies. Consider mortgages, previous filings, receipts, account statements, and pay stubs when you’re being audited.

Remaining patient and calm

The IRS doesn’t issue audits with the direct belief that a crime was committed. The course that tax law takes can seem intimidating, but most of it is procedural. You want to stay calm without assuming anything beyond what the documents in question reveal. If you’re suspicious of an audit, keep in mind these reasons why the IRS issues them:

– Business partners: Business partners who get audited are linked to you, resulting in you being audited also.
– Filing inconsistencies: Lacking a full knowledge of tax law results in a strong likelihood of errors that you never knew were made.
– Foreign assets: Filing foreign assets is difficult because you must file such assets to the IRS but through the country, your assets are in.

A larger likelihood and more advanced technology

As digital filing becomes more common, it increases the likelihood of anyone being audited. These technologies are so keen on finding errors that the IRS issues more audits now than ever before. If the agency is ready to audit you, you’ll receive the audit via mail to your business or home.