Few things cause more anxiety for taxpayers than an IRS audit. While it’s natural to feel concerned, understanding the process and preparing appropriately can make all the difference. If you’ve received a notice, here’s what you need to know to handle the situation with confidence.

Why Does the IRS Audit Taxpayers?

An audit is essentially the IRS’s way of double-checking your tax return for accuracy. While some audits are triggered by discrepancies or unusual claims, others are simply random. Common reasons include reporting errors, high-value deductions, or discrepancies between your return and information reported by third parties, such as employers or banks.

Types of Audits

Audits can vary widely in complexity. A correspondence audit may involve nothing more than submitting documentation by mail, while a field audit might require an in-person review of your financial records.

Understanding the type of audit you’re facing is the first step in addressing it effectively.

How to Respond

When you receive an audit notice, start by reading it carefully. The notice will explain why your return is being reviewed and what the IRS is requesting. From there:

1. Gather Documentation: Collect all relevant records, including receipts, bank statements, and prior returns.
2. Stay Organized: Present your information in a clear and concise manner to avoid delays or confusion.
3. Respond on Time: Delaying your response can lead to penalties or escalation of the audit process.

Do You Need Professional Help?

While some audits can be resolved with straightforward responses, others require in-depth knowledge of tax law. Working with a tax resolution expert can relieve much of the stress and uncertainty. A professional can analyze your case, represent you in communications with the IRS, and work to minimize penalties or additional tax liabilities.

Preventing Future Audits

While not all audits can be avoided, maintaining accurate records and double-checking your return for errors can reduce your chances of being flagged. Filing on time and ensuring consistency between your return and third-party records is also essential.

Facing an Audit? We Can Help

An IRS audit doesn’t have to be overwhelming. At Accelerated Tax Relief, we help taxpayers navigate the audit process with confidence. Whether you’re facing a correspondence audit or something more complex, we’re here to guide you every step of the way.

Call us today at (630) 428-3015 to schedule a consultation. Let us help you resolve your audit efficiently and protect your financial future.