You just found out that you're going to be audited by the IRS. Yes, you are going to be audited. You've never been through this process before. You feel anxious and unsure about what to do, where to get help or what to think. Is there someone you should call? Are there any steps that you should take?
Before an audit, don't panic, prepare. How? There are several things you can do to survive an audit. First, you need to gather all of your financial reports, tax documents, and wage information. You need to convince the IRS that you reported all of your income.
You won't be able to prove this if you are unable to show all of the check slips, payment statements and other evidence of your earnings. You will additionally need to prove that you are actually qualified for each of the deductions or exemptions that you've claimed. Organize all of the documents that were used as part of the filing process so that no questions remain unanswered.
IF you have spoken with a financial planner, advisor or accountant, reach out to these individuals right away. Talk about the audit and make sure that you're given every one of the documents that were used for your federal and state tax returns.
If you need more time to gather all of the paperwork, request an extension or a delay in the audit. Don't rush, make sure you have all of the documents you need to support all of the claims you made in your taxes.
Try to keep realistic expectations for this process. You should actually attempt to lower your expectations if you can. During an audited, you have a very high likelihood of having to pay additional monies out. It is rare for people to get through audits without facing a larger tax debt. The ultimate goal is to simply minimize this added debt. Through proper organization, preparation, and a willingness to be honest about your finances, you can limit the amount of harm and stress that an audit causes in your life.
Before an audit, don't panic, prepare. How? There are several things you can do to survive an audit. First, you need to gather all of your financial reports, tax documents, and wage information. You need to convince the IRS that you reported all of your income.
You won't be able to prove this if you are unable to show all of the check slips, payment statements and other evidence of your earnings. You will additionally need to prove that you are actually qualified for each of the deductions or exemptions that you've claimed. Organize all of the documents that were used as part of the filing process so that no questions remain unanswered.
IF you have spoken with a financial planner, advisor or accountant, reach out to these individuals right away. Talk about the audit and make sure that you're given every one of the documents that were used for your federal and state tax returns.
If you need more time to gather all of the paperwork, request an extension or a delay in the audit. Don't rush, make sure you have all of the documents you need to support all of the claims you made in your taxes.
Try to keep realistic expectations for this process. You should actually attempt to lower your expectations if you can. During an audited, you have a very high likelihood of having to pay additional monies out. It is rare for people to get through audits without facing a larger tax debt. The ultimate goal is to simply minimize this added debt. Through proper organization, preparation, and a willingness to be honest about your finances, you can limit the amount of harm and stress that an audit causes in your life.
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