In my career as a tax attorney, I have helped hundreds of taxpayers navigate IRS audits successfully. Below is a list of my top tips for those that are currently the subject of an IRS audit.
- Limit “live” contact as much as possible:
To the extent you can, limit your phone or in person contact with the IRS. One of the first steps the IRS takes when opening a new audit is schedule a “live” interview to talk to you about your tax return(s). Making yourself available to answer any question that pops into the auditor’s head carries a lot of risk—even very smart, very prepared, and well-meaning taxpayers can misstate answers or not understand the full ramifications of the words they are using when they answer. And once something is said, it cannot be unsaid. Limit live contact to the extent you can, or better yet hire an attorney so that you never have to talk to the IRS.
- Presentation matters
The IRS is eventually going to ask you for information and documentation, will set a deadline, and expect you to respond. In my experience, the easier you make the auditor’s job with a clear, concise, and clean presentation, the more likely you are to have your calculations accepted. Presentation has a huge impact on the case, so make sure that impact is helping your case rather than hurting it.
- Know your appeal rights
If you do not agree with the IRS Revenue Agent’s final adjustments, you have appeal rights. Exercising your appeal rights can completely change the results of the audit depending on all of the facts and circumstances. Maybe you did not have the correct substantiation in time, maybe you did not respond at all, or maybe you had an auditor that was unfair or did not follow the law. Don’t panic. Appeal! Keep in mind that there are strict deadlines for some appeal options, so read any notices from the IRS related to your audit carefully and ensure that your appeals are filed correctly and filed timely.
The best way to evaluate your case and determine the best route forward in an IRS audit is to talk to an attorney who specializes in IRS audits. At Urban Tax Law, we can help you with every stage of the audit process. After opening your case, we take over as the point of contact with the IRS (so you do not need to talk with them), we help evaluate your case and prepare a strategy for the audit, we prepare and present your submissions to the IRS, fight penalties, and we try to bring the audit to an efficient close. Schedule a consultation today, and let’s discuss your case.