Getting audited is never, ever, good news, but it doesn’t need to be a nightmare either. Here’s what you should do (and avoid doing) if you get an audit notice.
1. Don’t panic
Sometimes an audit notice can only be a request for information. So, if you’ve reported your taxes correctly (or think you have) there’s no need to panic. If you have a tax attorney, CPA or some other fit professional counseling you, it probably won’t be as bad as you may fear.
2. Carefully read the notice you receive
Many audits are desk audits or computer document-matching audits rather than the complete tax return audits done in-person.
The audit will state that you reported 'something’, that they have additional documents that they do not see reported, and they will propose an adjustment based on the information they have received.
3. Prepare the required documents
Documents are the key to success in audits. If you do not have adequate documentation, Provide organized documents and reconcile them to the amounts claimed on the return. If you do not have the proper documentation it's more likely that you won't get the deduction.
4. Don’t miss the deadline
Don't make matters worse by not Submitting your documents on time. An audit is a serious matter that can result in heavy fines, and you don't want to put more stress on the process by being uncooperative.
5- Watch what you say
If you’re nervous you could say things that could backfire. To avoid this, have a professional work on your behalf with the IRS.