Everybody is fearful of the possibility that some day they will get a letter from the Internal Revenue Service that they are going to be audited. What should you do now? How should you handle this situation?
Although a lot of folks break down because they understand that the IRS will be demanding to view their books and expense receipts, the reality of the situation is that the best audit advice is to remain calm and get together the data that you need. You should be thorough and as accurate as possible without worrying.
Prior to you deciding to put it to the side for a later date, take a few moments and start planning how you're going to respond to it. Get on the phone with the IRS and determine what is happening and at what time are they wanting to review your paperwork. This is an easy phone call that may assist you in determining what information you will need to get together before the meeting.
Also keep in mind not to blame the person on the other line. It's not their fault and they are just doing their job. It's also not your fault either and as long as you were honest and be forthright with the auditor, everything should be ok.
Once you speak with the representative on the phone, you may determine that you need more time to get all the necessary documents together. In this case you may need to ask for a postponement. A postponement will grant you additional time to get the gather all the paperwork together. Many times these are granted provided you have been cooperative with the auditor and have a legitiment reason for needing the postponement. So don't wait to the last minute to get in touch with the auditor.
In Closing
It is important to note that many of the audits done by the IRS are simply for minor errors such as adding or subtracting wrong. Other common errors are omitting information, incorrect social security numbers, writing a number on a wrong line, or using the wrong form. So don't let fear consume you. Be positive about the situation and be honest with the auditor. Generally you can just fix the mistake and that will be the end of it. Remember they are human too.
Although a lot of folks break down because they understand that the IRS will be demanding to view their books and expense receipts, the reality of the situation is that the best audit advice is to remain calm and get together the data that you need. You should be thorough and as accurate as possible without worrying.
Prior to you deciding to put it to the side for a later date, take a few moments and start planning how you're going to respond to it. Get on the phone with the IRS and determine what is happening and at what time are they wanting to review your paperwork. This is an easy phone call that may assist you in determining what information you will need to get together before the meeting.
Also keep in mind not to blame the person on the other line. It's not their fault and they are just doing their job. It's also not your fault either and as long as you were honest and be forthright with the auditor, everything should be ok.
Once you speak with the representative on the phone, you may determine that you need more time to get all the necessary documents together. In this case you may need to ask for a postponement. A postponement will grant you additional time to get the gather all the paperwork together. Many times these are granted provided you have been cooperative with the auditor and have a legitiment reason for needing the postponement. So don't wait to the last minute to get in touch with the auditor.
In Closing
It is important to note that many of the audits done by the IRS are simply for minor errors such as adding or subtracting wrong. Other common errors are omitting information, incorrect social security numbers, writing a number on a wrong line, or using the wrong form. So don't let fear consume you. Be positive about the situation and be honest with the auditor. Generally you can just fix the mistake and that will be the end of it. Remember they are human too.
About the Author:
Hubert Miles is a free lance writer and webmaster for several financial websites. For more information on Personal Finance Articles and Financial Articles.
