How to Bluff One's Way Through an IRS Audit

Whether you're self-employed or work for someone else, an IRS audit can be one of the most daunting experiences you'll ever face when it comes to your taxes. Whatever state your finances are in on paper, the way you conduct yourself during an audit can impact whether your auditor trusts what you say, or calls your bluff.

Difficulty: Moderately Challenging

Instructions

1. Hire a qualified tax professional who can act on your behalf. A qualified tax professional will look out for your best interests during the audit, and help you with the tax code.

2. Get some records organized to make up for the ones that aren't so organized. You might think you can bluff your way through an audit with the "disorganization" excuse, but your audit will actually go much smoother if you make an effort to get organized. That way, you won't look like you're trying to hide something under that mountain of papers.

3. Keep small talk to a minimum. You can be friendly to the IRS auditors without engaging in small talk that might get you into trouble. Stay polite and professional and don't try to charm the auditors, or they may suspect that you're trying to distract them from something.

4. Minimize signs of extravagant spending. If you've reported modest earnings, then make sure your appearance matches your claim so that auditors don't get suspicious and call your bluff. In other words, don't show up for the audit wearing a Rolex, and while you're at it, hide those framed photos of your private Lear jet.

Tips & Warnings

• Respond to the audit notice in a timely manner. Typically, you have 30 days to respond to an audit notice, after which time the IRS can adjust your tax liability automatically if you don't cooperate with the audit.
• Don't bring extra records to over-compensate. Bring only what the original audit notice requested, or you run the risk that the auditors will find something else of interest to investigate.