IRS Audit

6-Steps To Survive An IRS Audit

irs audit
Edited by Michael Berger

Here are some crucial tips on how to prepare for an IRS audit…

If you are one of the unlucky few who are chosen for a tax audit, you need to be prepared…

STEP-1 Refresh Your Memory:

Your first step should be to take a good look at the details of your return to refresh your memory. Once you have a thorough understanding of the contents of your tax return, you need to organize your records to support the items questioned by the IRS.

STEP-2 Get Professional Help:

If you feel that the matters being questioned or disputed by the IRS are over your head, you should seek the assistance of a professional such as a certified public accountant (CPA) or an attorney.

STEP-3 Decide When To Settle:

Prior to the actual examination, you should establish a range of settlements that you are comfortable accepting. This will prepare you for possible settlement terms that might be discussed later by the examiner.

STEP-4 Don’t Volunteer Unrequested Info:

If you decide to attend the examination, take ONLY the records related to the items in the IRS Notice of Audit – DO NOT volunteer extra records, since you may end up subjecting yourself to a new investigation. If the examiner happens to question you on an item not mentioned in the IRS notice, you should refuse in a polite but firm manner until they file a formal request for this information.

STEP-5 Employees Need To Be Briefed:

If the audit occurs in your place of business, all employees should be instructed NOT TO TALK about the business or the audit with the IRS agent. Inquiries from the IRS agent should be referred to you.

STEP-6 Record The Interview:

Finally, 10 days prior to the interview, you should give the IRS written notice that you will be making an audio recording of the interview with the IRS agent. Video recordings are not allowed.

STEP-7 Use This Shortcut:

There is a ‘3-Step System’ we have used to save clients a ton of money and a load of stress during an IRS Audit. All is explained in a SHORT VIDEO HERE…

Article references:

About the author

Michael Berger

Michael began public accounting in 1969 after working in the family business. Michael received his Associates Degree from Nassau Community College and then completed his Bachelors Degree at C.W. Post College of Long Island University. After working for two small local accounting firms Michael began this firm, with others, in 1978. This firm has been successful with small to medium sized companies mainly on Long Island through personalized services. Michael continues with annual continuing education as required by New York State.

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