Tax Audit Tips - How to Survive a Tax Audit

Top tax audit tips that will help you come out of an audit unscathed.
(Sorry, no guarantees.)

  1. Did you know that the IRS admits that the reason most taxpayers lose an audit not because they were dishonest only because they were not able to prove that they were eligible for the deductions.


    Every year the IRS takes money from taxpayers simply because they do not have proof of expenses that they really did spend.

    Don't be one of them by keeping good records acceptable by the IRS.

    If you have business expenses taxminimiser is an easy uncomplicated way to keep track of your expenses.

    Which records does the IRS want you to keep?

    Check out Publication 552 for recordkeeping guidelines.

  2. The auditor is not your friend.

    The auditor might be friendly and pretend to be on your side but remember: Although you must always be courteous to the auditor (even if the auditor is not) never offer any extra unasked-for information like other years tax returns or talk too much with the auditor.

    Even better bring along a representative that has experience dealing with the IRS and let him do the talking.

  3. Respond to the audit notice promptly. The notice will show a deadline, usually 30 days, make sure not to miss it. Or at least contact the auditor if you need more time.

    If you can't make the appointment speak to the auditor about changing the date.

  4. Another tax audit tip is to appeal if you lose the audit.

    Unlike auditors whose goal is to try to bring in as much money as possible the appeal officers need to close as many cases as possible. If you feel you are right you have a very big chance of coming out better with the appeal.

    Just make sure not to sign form 4549 because if you sign you forfeit your right to appeal.

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