An audit is an examination of your financial documents by the Internal Revenue Service (IRS) to determine if they're accurate or to gather tax research. There are different types of audits. Some merely request documentation from you by mail, and others may require you to appear at an IRS office. Random audits are used to provide research on tax issues.
No matter the type of audit, be sure that you respond to IRS communications and don't ignore deadlines?this will only make the situation worse. Keep copies of the information that you receive from, and send to, the IRS. Respond only to topics that the IRS is inquiring about. Do not volunteer any additional information. Be sure to remain calm in face-to-face meetings with IRS employees, and avoid any angry or emotional outbursts.
Be prepared for your audit by gathering the necessary information and keeping it neatly organized so that you or your tax professional won't have to spend time sorting through papers.
Find out what your options are. IRS publications are an excellent source of information. If your tax return was prepared by a professional tax preparer, consult this firm for assistance and, if necessary, to arrange to have them represent you before the IRS.
Some people may feel comfortable responding to a random audit on their own. However, given the complexity of tax laws, those who get detailed questions from the IRS should consider getting professional help, such as an accountant, lawyer, or enrolled agent (a person authorized to represent taxpayers to the IRS).
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