IRS Audit - Don't PanicManual Davis, Jr.
March 9, 2009 — 1,338 views
IRS audit. Are there two words in the English language that can instill fear such as those? If the idea of an audit doesn't scare you there is something wrong with you. The phrase literally conjures up thoughts of going broke and years in prison. We have been conditioned to think that the IRS audit is the end of the world. In reality, you chances of being audited by the IRS are pretty slim. The statistics state that 80% of all tax payers will be audited so even though it is unlikely it will be you, understanding audits is important.
The IRS audit isn't necessarily random. There is different criterion for different income levels as far as who gets audited. There are three audits, each with their own level of severity. The most common IRS audit is the correspondence audit in which contact with the IRS is through the mail. This is usually just a check on third party documents that may need to be explained further. In this case, the taxpayer can usually handle the situation without much of a problem. The next form of audit is an IRS office audit where you actually meet with and IRS agent in a local office. This is when consulting a tax expert is prudent as you will be asked to explain certain aspects of your return and protecting yourself is paramount. The third and most sever IRS audit is the field audit. This is the biggie. The IRS comes to your home or office and actually does an investigation. This one you want to have a professional help with.
The thing to remember about an IRS audit is that you shouldn't panic. Most times in any of the three audits, the problems are resolved fairly quickly and as painlessly as possible. Whatever errors were made are corrected and if there is an amount to pay the IRS will most likely make a deal just to close the books. Sometimes it is the IRS that made the mistake and the whole thing has no consequence whatsoever.
With the exception of the correspondence audit, you should seek help for any IRS audit just to make sure your rights as a taxpayer are protected from being infringed upon by the government. Tax experts know exactly how to deal with IRS audits and will get you the best possible outcome. Don't panic deal with it.
About the Author
Manuel Davis Jr. is a CPA and tax resolution expert for backtaxeshelp.com. We have a tax team that can help with just about any tax problem including IRS Audit Help. Visit our site to find out more information on audits or to request a free consultation or help.