The IRS coming to you is a very difficult matter. The government will spend days prying into every aspect of your life. There are several things you can do to make the process go as smoothly as possible.
- Make sure you are well represented. A well-versed tax representative must be with you when confronting an audit. This is beneficial to you because such assistance will support your argument and prevent you from making false claims that the government can use against you. Another way a tax representative can assist you is by giving you proper advice on how to address the IRS auditor’s frequently asked questions.
- Supply the proper documents. Be completely upfront with the documents that the IRS representatives are asking for. You may request for the meetings to be held where you hold your documents. This bold move shows that you have nothing to hide. On the other hand you may also just present only the specific documents the IRS asks for; this is a much more conservative approach. Whatever you decide on doing, being honest will get you through this ordeal.
- Don’t underestimate the government. The government is way more powerful than you would even guess. Hiding things would just lead to your own downfall. The government scorns people who have been less than honest about their taxes. The government thankfully is forgiving when it comes to genuinely honest mistakes so telling the truth is your best option.
- Examine and appeal. Assess and examine the audit if you feel that you have been accused wrongly. Keep appealing and if there are mistakes, they will be found out. Mistakes from the auditors have been known to happen. If you are advised by your legal aid to give into the finality of the audit then you should.
- Consider appealing to the The U.S. Tax Court. Sending your petition to the Tax Court is an advised alternative that allows you to represent yourself. Moreover, the Court will examine the substantial findings of the auditor and take into account your own defense and testimony. To strengthen your defense, seek aid from an individual or professional who is well-versed with tax issues. The U.S. Tax Court has been the place to increase your chances of winning an argument with the IRS due to a more relaxed legal process. Consequently, your final resort is taking it to the U.S. Court of Appeals but no matter what, the U.S. Tax Court has the final say in your IRS investigation.
Yes, an IRS audit is daunting to say the least. Your greatest asset will be legal assistance from one who can follow the course of events and determine what needs to be done. Although measures need to be taken immediately, it is crucial to be fully aware of the of how you approach the issue. As much as possible, stay within legal jurisdiction and avoid being tricked and persuaded by faulty practices and legal shams. Furthermore, it is possible to fight IRS audit if it is done correctly.