Tax day 2021 has come and gone, and for most of us, that’s the last we’ll interact with the IRS until tax season next year. But for a select few, an audit letter may make an unwelcome appearance in the mailbox. In fact, because the IRS usually has at most three years after you file to request an audit, you'll often see audit notices arriving in the fall and winter, before the spring deadline.
If this happens to you or someone you love, here’s what you need to know:
First, don’t panic. The IRS is simply taking a closer look at your return to verify whether you included all your income and took only the deductions and credits you were allowed by law.
Read carefully. The IRS’s audit letter will tell you the type of audit requested and detail the documentation the IRS would like to see to support your return. It’s essential to provide the information just as the IRS requests it. The IRS audits returns in three ways: by mail, at an IRS office, or in person at your home or office.
Office and field audits require more preparation. If your audit is for an in-person audit at an IRS office or your home or business, I highly recommended you get a licensed tax professional, CPA, or attorney to help with your audit and advocate on your behalf.
Respond promptly. Ultimately, the IRS will either accept your return as-is or require adjustments. You’ll get a report of the IRS findings and a letter that allows you 30 days to appeal if you disagree.
It can be stressful to get audited by the IRS, but with the right information, professional guidance, and lots of deep breaths, you can come through it unscathed.
Let me know if you have questions—and feel free to pass along my information to anyone you know who could benefit from it.
To ensure you are audit proof make an appointment to review your books. We are always ready to help!!