IRS Audit
The IRS has two major forms of audits. There are audits that can be conducted through the mail, where they simply ask you to sign your return if you forgot to do so, or send in W-2's or any other forms of documentation you may not have included in your return. The second form of an audit is when the IRS requests an in-person audit.
Both types are serious, and failing to supply the IRS with the correct information during a through-the-mail audit could lead to an in-person audit. However, an in-person audit may be an indication that the IRS has serious concerns regarding the correctness of your tax return.
In either event, you should be truthful and answer the IRS’s inquires truthfully. However, only answer the questions you are asked, and do not divulge any more information than is neeeded. You could inadvertently widen the scope of the audit by mentioning information that was otherwise irrelevant. In the same vein, if the IRS asks you to bring particular documents to an in-person audit, bring only those requested documents--being prepared with your entire return when it is not needed could enable the IRS to reach beyond the original purpose of the audit.
Understandably, many people do not like facing an IRS audit alone, even if they have done nothing wrong and all of their deductions are above reproach. A tax professional may be able to assist taxpayers responding to a through-the-mail audit by helping ensure the correct documentation is included. In the case of an in-person audit, a tax pro can help you compile the correct information and may even be able to represent you at the audit without you even having to be there.
There is no shame in having a tax pro represent you during an IRS audit. In most cases, an auditor will even appreciate working with a trained tax pro, because the auditor will not have to explain tax code to individuals who aren't experts in the tax field. |