What Do I Do If I Am Audited?

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What do you do now that you are  audited?  By Jeffrey Brooks, CPA 602-292-2009

First, my condolences!   My clients have had much fewer audits than the national average.  I pride myself in not just reviewing the tax returns for additional tax savings but also looking for ways to avoid an IRS audit.

But now that you are going to have an IRS audit, there are some things you need to do to properly prepare yourself. Here are some suggestions.

  • Review the tax notice with your CPA to find out WHAT specifically is being audited and where you will find the information. Review and recall what you recorded and why.
  • Possible weak areas. What is IRS really looking for?
  • Find supporting documentation. For any amounts listed on your tax return, gather together all the applicable documents. You may need to provide these as evidence.
  • Specific items. Find any documentation on items the IRS is specifically questioning. Know how and why you arrived at the figure that you did.
  • Review the tax laws. If any area is pinpointed by the IRS in its notice, ask your CPA for the tax law or if you prepared your own return, study that tax law area to become better informed. That way, you will prepare yourself for any questions. You will also need to let the IRS know why you treated an item the way you did.
  • Contact your power of attorney, if needed. See if they are available on the audit date. If not, question them about any items listed on your tax return. By having someone available to answer technical questions, you can only benefit.
  • Documents.  ONLY take to the audit, the SPECIFIC information that the IRS asked for. Do not take any more information with you to the IRS audit examination  than IRS originally asked for.
  • The more you say, the more you lose. The more you say, the more they can question. Do not volunteer (or mention) any additional information to the IRS.
  • Fraud. Contact your attorney if you think your tax return may be fraudulent. They can provide insight and background information in the intricacies of your tax return.
  • Make certain that the audit date is far enough in advance for you to properly prepare yourself.
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About Jeffrey Brooks

Jeffrey Brooks, CPA, CFP, MBA since 1976 has specialized in helping clients save significant taxes, help businesses increase their cash flow, revenues and profits while increasing their control and satisfaction. Jeff and his accounting firm sincerely cares about the happiness of his clients.

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JBrooks Wealth Advisors, PC.

Certified Public Accountant
Address: 4647 N 32nd Street, Suite B245
Phoenix, Arizona 85018
Phone: 602-292-2009
Email: jeff@jbrookswa.com