You were recently informed that the IRS plans to perform an audit. On You. Yep, you. This hasn't happened to you before. You're nervous, you don't know what to think, what to expect, or who to call. Should you call someone? What should you do?
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.
This is not something that you are going to be able to accomplish if you are unable to provide check slips, payment statements other tangible forms of evidence for your earnings. You'll need to show that you are actually qualified to receive any and all of the deductions that were claimed. Put every document that was used in the filing process together so that no questions are left unaddressed.
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 it will take more time to accumulate all of the documentation you need, consider asking for an extension or try delaying the audit. Do not try to rush your way through these efforts and be sure to get all of the evidence you need for supporting your tax claims.
Don't expect too much. You should probably lower your expectations a bit. If you're audited, you likely will have to pay an additional amount of taxes. Rarely, you can escape an audit without having to do so, but you likely will. Your goal should be to avoid paying too much. If you're organized, prepared, and straightforward, you will come out of your audit without too much harm or stress.
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.
This is not something that you are going to be able to accomplish if you are unable to provide check slips, payment statements other tangible forms of evidence for your earnings. You'll need to show that you are actually qualified to receive any and all of the deductions that were claimed. Put every document that was used in the filing process together so that no questions are left unaddressed.
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 it will take more time to accumulate all of the documentation you need, consider asking for an extension or try delaying the audit. Do not try to rush your way through these efforts and be sure to get all of the evidence you need for supporting your tax claims.
Don't expect too much. You should probably lower your expectations a bit. If you're audited, you likely will have to pay an additional amount of taxes. Rarely, you can escape an audit without having to do so, but you likely will. Your goal should be to avoid paying too much. If you're organized, prepared, and straightforward, you will come out of your audit without too much harm or stress.
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