How to Survive an IRS Tax Audit

If you have received a notice from the IRS for an Audit of your tax filing, you can help yourself survive by doing a few things.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

• Copies of your W-2's
• expense documentation

1. If you are audited, the IRS will set the time and location of the audit. Generally the audit will be set up at the IRS office nearest your residence. If the audit is scheduled at a more remote IRS office and there are IRS offices closer or you have recently moved, you can request a transfer to a different IRS district office and it typically will be approved.

2. 
    

   Collect copies of all the documentation that was used to fill out your tax return. You will need receipt, documentation for mileage, bills, calculations, etc, that you can readily provide to the IRS agent who is performing the audit. Organize the documentation in a neat manner before the audit, so you can easily provide the information when it is requested so the time of the audit is not lengthened.

3. Always record your interview with the IRS during the initial interview and the appeal (if necessary. You have the right to make an audio recording of these IRS tax audit proceedings according to the Omnibus Taxpayer Bill of Right. You will not be allowed to videotape the audit proceedings so do not ask.

4. 
    

   Be professional to the IRS agent who is auditing you. The more unprofessional you behave, the more the IRS agent will have to question. If you act in a recpectful manner, then if you are missing a few receipts, the agent may be willing to take your word for certain tax documentation.

5. During the IRS tax audit never settle early with the IRS or provide additional information outside of the information requested. You should wait to settle once the IRS tax audit is complete. At this point you will have a much better understanding about the problems with your tax return filing from the IRS perspective. If you have suspicions about your tax return now is not the time to start asking questions. Wait to see what the IRS agent’s claims are against you before accepting a tax settlement.

6. Once the IRS tax audit is complete, you will receive a Revenue Agent Report. Within this report will be the official recommendation of any additional tax you owe. Then, you will be asked to sign a waiver. The IRS will want you to sign the waiver indicating you agree with the report and recommendation. You can do one of three things:
   
   1. Accept the recommendations and pay the tax that is due.
   2. Pay the tax that is due and file a refund for the amount you are disputing.
   3. Request a meeting with the IRS Appellate Division.

Tips & Warnings

• When you prepare you tax return and have questions, call the IRS taxpayer assistance line. When you speak to the IRS representative, ask for their name. Record the name of the person and the time and date along with the advice they provided. If there is an error on your tax return involving the IRS advice, you will not have to pay a penalty if you are audited as long as you can provide the IRS representative’s name and the time and date of the call.
• Never lie or provide false documentation to an IRS agent. This is considered criminal activity and and lead to charges against you.