Audit Time? Learn How to Get Through Quickly and Effectively
There are few experiences as nerve-wracking as receiving a notice for an IRS audit. Everyone has heard any number of horror stories about audits that ended up costing a fortune. Here's a quick look at what you should do to prepare for a tax audit to make sure you can get through the process with as little concern and time as possible.
First, take a few minutes to determine exactly what records the financial audit covers. You're not required to provide additional documentation than that which is required for review. Keep your replies and the information you provide brief and to the point. Take the time to organize copies of the original documents so that they are easy to access during the audit. That way, if the auditor wants to hold onto the documents, you don't need to worry about the original documents being lost.
Being organized can also reassure the auditor that you want the process to go smoothly and easily as well. If you're missing some documents, it is considered acceptable for you to reconstruct them and for a reconstructed document to be accepted by the IRS. Though courts have occasionally been willing to accept a taxpayer's verbal explanation, having your documentation in line ahead of time stands a better chance of success. Showing that you're substantially cooperating with the audit goes a long way towards proving good faith in the process.
When it comes to the actual audit, remember to keep your cool and remain polite. IRS auditors are often treated with mistrust and anger, so staying calm and treating them with respect will make the process easier for all involved. Remember that auditors are trained to watch for things that seem out of place. Be careful not to offer up any additional information beyond what has been requested. If you do, they can use that information against you in their proceedings.
By knowing how to handle a tax audit, you can get through the process with minimal fuss and worry. If you're facing a financial audit and need help preparing for it, the accounting professionals at AccountRely can help. Please feel free to contact us today and see how our family approach to business exceeds all of your needs.