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What to expect during an IRS Audit. If you've been selected for an IRS Audit, you will have
received the audit notification that tells you what items are being audited. You will
have received Publication one, that gives you your rights as a tax payer. You will have
received an information document request that tells you what exactly the IRS is looking
at, and what specific items and receipts you should be bringing to the audit yourself.
When you first go into the IRS Audit, they're going to ask you a series of questions. You
need to be truthful, honest and answer the questions. Answer the questions completely,
but you don't need to go into long details about it. You just need to give the answers
that have been asked. The other thing is, they will have a copy of your tax return.
They should actually have the original tax return that was filed. They may ask you to
bring in copies of other years tax returns, which you might do at the initial meeting,
or you might wait for a subsequent follow up meeting. Typically you wouldn't take those
into the first meeting, but sometimes you would. The other information that they're
going to ask you to bring, is your receipts. So, once you go through the initial interview
process where they ask you questions, then they're going to ask to see the receipts and
documentation for the items that have been selected during the audit process. Depending
on the depth of the information that has been selected for audit, could determine whether
they go through each, and individual receipt, used to substantiate all of the expenses,
or whether they pull a sample and just look at selected receipts. If those receipts are
not available, or you haven't brought everything that you needed to, to the audit, then a subsequent
follow up meeting may be scheduled. You really want to do your best to make sure that you
bring all the information that has been requested to the initial audit meeting. If your audit
can be resolved and closed at the initial meeting, you may or may not have additional
years opened and expanded on the audit. But, it is in your best interest to try to have
the audit resolved at the initial meeting. Again, make sure during the interview process
that you give complete, forward, accurate answers that you do not have to divulge additional
information and make sure that you've brought all the receipts and backup for the information
that have been selected. They will be going through those, if you can have them neat and
orderly, it's to your advantage. And, if you're missing receipts you don't have to divulge
those, but make sure that you have everything that you have been able to get at that time.
If you feel like you can get more information, but you just did not have time, then ask for
additional time to submit the additional documentation. If at any point during the audit, you feel
uncomfortable, and would desire to have representation during the audit, you can ask that the meeting
be adjourned, for you to seek representation.