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How to win your Tax audit

Need to know how to win your Tax audit?

If the IRS is not satisfied with what they see on your tax return, it may be IRS audit time for you. You may be eager to know how to win your tax audit, however, the answer to that question is not straightforward.

Dealing with an IRS audit is not an easy task, in the sense that you’re considered guilty until you clearly prove to the IRS that you’re innocent.

You need a lot of experience and insight to know how to win your tax audit. This is why we are here. we have the experience and knowledge to implement strategies to help you win tax and audits.

If you just got notice of an IRS audit by mail, you are allowed to panic a little. However, remember that you have the opportunity to get help by hiring a tax professional who will serve as your IRS audit guide and work to ensure you win your tax audit.

 

IRS compliance research examination notice: what does that mean?

If you receive a mail saying that you have been selected for a compliance research examination, then you should automatically start getting ready for a tax audit because chances are that it is IRS audit time. An IRS compliance research examination is put in place to check for tax compliance; it is also known as an IRS compliance audit. If errors are found, a full tax audit will follow.

A few tips that will help you win your IRS compliance audit are:

  1. Take your time. Do not rush into responding to the email or making an appointment. Speak with your attorney and get your necessary documents ready first.
  2. Be polite to the auditor but don’t volunteer any information they haven’t asked you to provide.
  3. Get your attorney to go through the auditor’s claims. You just might find some mistakes.
  4. Use the mistake of the auditor to your advantage.
  5. If you’re confused in the case of an IRS mail audit, you can request a face-to-face audit where your attorney will fully represent you.

 

Your guide to an IRS audit

The best thing to have as your guide to an IRS audit is a full understanding of what an audit is, reasons the IRS would audit you, how the IRS audit fake receipts, how the IRS audit by mail, and how best to protect yourself if you do get audited. This will help you understand how to win your tax audit. 

The IRS defines an audit as “a review/examination of an organization’s or individual’s accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is accurate.”

This means that if you get notified of an IRS compliance audit, you were either randomly selected, or some discrepancies were found on the tax return you filed and you are being called upon to explain them.

Apart from random selection, a few of the things that can trigger an audit are mathematical errors, using rounded figures, having a very high or very low income, running a home-based business or being self-employment, missed income, having unusual amounts of cash, and having assets in a different country. Knowing these facts can serve as your IRS audit guide.

Unless a substantial error is found in your returns, the IRS audit time limit is 3 years. The IRS is not likely to go back and include returns filed over 3-6 years because they try to audit tax returns early.

 

Where’s my refund after audit?

An audit does not stop you from receiving your tax refund. So, even if the IRS selects your tax return and sends you an audit notice, you will probably still receive your tax refund when it is due.

 

How many times can the IRS audit you?

There is no limit on the number of times the IRS can audit you. if discrepancies are found on your tax return often, you can be called for an audit each of those times.

If you have been audited before, then you most likely have an idea of some common IRS audit interview questions and answers. However, if you have never been audited, some practice IRS audit interview questions are:

  • Do you have any hobbies, do they generate income, and was it reported on your tax return?
  • Did you make any changes to your tax return?
  • Did you report all income and or deductions on the tax return?
  • What do you (and your spouse) do to earn a living?
  • Are you aware of any unreported changes that should be effected?

An IRS compliance audit can be scary, however, it is possible to win tax and audits when you have the right knowledge and set of negotiation skills.

Need personalized advice on how to win your tax audit or adequate tax audit representation? Reach out to the best team of tax experts at 888-585-8629 or 617-430-4674 or send us an email at [email protected].