What To Do When You Are Audited By The IRS

Posted on: 10 May 2017

Getting audited by the IRS can create a scary situation. There are many times when people do not know what to do when they are audited by the IRS because it has never happened to them before. The guide below walks you through the steps to take when you are audited by the IRS to make the situation as minimally stressful as it can be.

Gather Your Tax Information For Previous Years

The first thing you need to do is gather your tax information for the past few years. You will need to have this information reviewed to see if you made any errors when filing your taxes in previous years. If you cannot find the documents, you can contact the company you used to file your taxes to get a copy of filings from previous years. Even if you filed the taxes yourself with a software program, you should be able to get a copy of the tax preparation from the company after proving your identity.

Meet With A Tax Professional

When you have IRS tax problems, you need to seek advice from a tax professional. A tax professional can look over your tax filings for previous years and determine what errors, if any were made. There are many times when companies or individuals are audited simply to prove the deductions that they are claiming. The tax professional will be able to understand the terminology that is used in the IRS documentation sent to you and help you gather the proof that you need to show them that your deductions are valid. If you do not hire a tax professional, you could end up paying more than you should to the IRS.

Set Up A Payment Plan

If the IRS determines that you owe money to them, you can set up a payment plan that allows you to make payments over time to pay off the debt that you owe. The IRS will help you determine how much the bill will be each month and if anything changes in your finances you need to let them know right away so that they can change how much you owe each month.

Being audited can be very scary, but getting help from a tax professional will make the process easier to handle. You need to be upfront and honest about your finances and dedications when meeting with the procession so that he or she can help you as much as they possibly can.