What To Do If You Are Audited By The IRS

If you are being audited by the IRS, the first thing you need to do is attempt to figure out what part of your taxes is being audited.

The chances of you being audited the IRS is fairly small. You have less than a 1% chance of being audited. If you are making over 300k a year then your chances of being audited might go up a little bit to maybe 3%.

One of the important things to keep in mind is that the IRS can audit your taxes for up to three years after you have filed your taxes. That is why it is important to keep your taxes for at least three years after you have filed your taxes. However, I would recommend keeping your taxes for ten years to help you avoid any pitfall the IRS might have set for you in the future.

You are only going to be audited if the IRS finds a relatively big error in your taxes. For example, you make $100,000 a year, but gave $50,000 of it away to charity. The IRS keeps a file of all of your taxes on record. They understand what your income is and what you are paying in the form of taxes. They will not flag your taxes unless they realize that something is off somewhere.

When you do get audited by the IRS, you need to try to find out what exactly the IRS is auditing in your taxes. The IRS will send you a letter in the mail that should detail what they are looking for. However, this is where hiring a tax attorney could come into play.

Once you find out what the IRS is auditing you need to be able to provide information to document what or back up what you have stated in your taxes. This information should be saved from the onset. If you hired a CPA to do your taxes, then they should have kept it on record. You should, however, keep all of the tax information on record.

Once you have the information in your hand documented that the IRS is auditing, then you need to submit it to the IRS. This should resolve most issues.

If you are working with a tax attorney, then you can have them submit the information to the IRS. If you are not working through a  Tulsa tax attorney, then you need to submit this to the IRS yourself.

This should be the final step to prevent the IRS from taking any further action against you once you can provide documentation for the issue in question. This is assuming that the IRS audit was an innocent mistake that can be easily corrected. If you did initially mislead the IRS in your tax returns, then looking into hiring a lawyer is really no longer an option.

Hiring a tax lawyer can have many benefits if you are finding yourself in a situation where you are being audited by the IRS.

 

 

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