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Tag Archives: IRS audit

How to Prepare for a Tax Audit

How to Prepare for a Tax Audit

Fear or panic might be your first response when you receive correspondence from the IRS. I know that’s how I’d react! But don’t let this initial panic and fear cause you to make mistakes. Take a deep breath and calm your racing heart. There are steps you can take to help you prepare for a tax audit. Request More Time You’ll need time to gather documents at the very least, so requesting additional time is not unreasonable. In addition, it can give you the time you need to consult with your tax preparer and a tax lawyer if you need one. Hire a Professional If you hired a tax preparer to complete the documents in question, have them consult with the IRS about the audit. If possible, have them meet with the IRS and deal with the audit on your behalf. Meeting with the IRS on your own is not necessarily a good idea. You could innocently reveal information the IRS representative didn’t ask for. This could cause additional problems for yourself that may not have even existed when the auditor arrived. Gather Records First, it’s important keep your records up to date at all times. If you are ever ...

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Tax Season: Get Out the Calculator and Bottle of Aspirin

The following is a guest post. If you are interested in submitting a guest post, please contact me.  For some people, taxes aren’t that big a deal. They fill out their 1040EZs, send them off, collect their refunds and that’s it. For others, taxes are more complicated and can become quite stressful. Here are some tips to help you get through tax season (hopefully) unscathed. 1. Get organized early. The earlier you start organizing your files and receipts for tax season the easier your taxes are going to be to complete. The best time to start is at the beginning of the year by setting up the system for the next twelve months. If you weren’t able to do that last year, though, don’t worry. Just start now!

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