- March 18, 2019
- Posted by: oneplacefinancial
- Category: Tax preparation
Receiving a mail from the IRS can take you by surprise. If you’ve had a difficult year in terms of finances, or you’ve had problems with taxes in the past, you’ll know that all notices from the IRS aren’t the same.
Some of their notices just require a short response, others require no response at all. But what do you do when it’s about a tax audit? IRS records may indicate that you owe money as well.
These are definitely stressful things to deal with, but with a few steps, you can work through the procedure.
Read through the document carefully
The notice you receive from the IRS is important. IRS notices regarding a tax audit won’t give you details as to why it’s being done. They will, however, mention the section of your tax return that is being questioned. The notice will also list the documents you need to provide to the IRS.
Understanding what they want from you can make the whole process a lot simpler. You’ll be able to gather together all the documents you need.
Do your research
Most people tend to pay the IRS out of fear, without being discerning about it. The experts at One Place Financial urge individuals to understand what exactly they owe before they pay it. Take out some time to research. Many people find that they owe less money or even nothing at all. Don’t always assume that you’re in the wrong.
Don’t ignore their notices
Ignoring an IRS notice or just assuming that they’re wrong is a big mistake. You must respond in a timely manner. This will help your case if you are indeed being audited.
You need to clarify and provide proof on the notice. The longer you hold off the problem, the more you’re limiting your options for it to be resolved.
Always be honest
Being honest is the best strategy in the long-term when it comes to the IRS. If an IRS officer suspects you’re being deceitful, they will only prolong the whole process. An agent will also dig further into your case till they find some dirt on you.
You don’t need to divulge all your information. You shouldn’t feel pressured into letting them in on every single detail. Just respond to the questions asked and provide the information requested.
Hire a professional
The process of a tax audit is lengthy and requires a lot of documentation. There are also many deadlines you need to adhere to, making it overwhelming to do alone. Professionals know the in and out of the system. Get a professional to help you with your income tax preparation and tax audit.