The IRS is Now Auditing You – What Can You Do?

This notice is something we all fear: The Internal Revenue Service (IRS), is going to examine your personal and business tax returns. "Examine" is IRS-speak to mean audit. The IRS claims it doesn't audit people. It simply examines tax returns. You can look for the best Orange County tax attorney via

3 Things to Do Now to Prepare for Getting Audited

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What should you do if a letter arrives in your mailbox? First, don't panic. Take a look at your tax return to see what happened. The IRS letter will clearly explain what is being reviewed, what you should do and when your deadlines are. Some examinations can be done entirely via mail, while others require a combination of mail and phone calls. 

Others can be done at your office or in your home. The first notice you receive by mail (also called a correspondence audit) is likely to contain either a request for additional information or a letter informing you that the IRS proposes changes to your return. You will only need to deal with one or two issues. 

You can reply by mail or request a personal interview. You have two options: accept the IRS's proposed changes to your tax return and pay any additional tax or you can dispute the results and provide evidence to support your position.

Notices for in-person examinations will inform you of the time and location, as well as what documents you should have. You can call the IRS to reschedule if the time is not convenient. The IRS will work with you to resolve this matter. Interviews are usually conducted in person at the location where the records and books are. Expect some disruption if you own a business.