IRS Audits: Top Tips to Ensure You’re Prepared

The Internal Revenue Service (IRS) audit — two words that can send a shiver down the spine of any taxpayer. But, don’t worry. With the right preparation and understanding, IRS audits can be a manageable process. Here’s how you can be prepared and sail through an IRS audit.

Understanding IRS Audits

An IRS audit is essentially a review of an organization’s or individual’s accounts to verify that financial information is reported correctly. Not all audits result from suspicious activity. Sometimes, you might just be selected randomly.

However, an audit doesn’t have to be scary. As long as you’re reporting your income, deductions, and credits honestly and accurately, there’s nothing to worry about.

Top Tips to Be Prepared for IRS Audits

• Maintain Accurate Records: Always keep a record of your tax-related documents. This includes receipts, bills, pay stubs, etc. These documents can serve as evidence if the IRS questions any item on your return.
• Understand Your Rights: As a taxpayer, you have rights, known as the ‘Taxpayer Bill of Rights’. This includes the right to privacy, the right to challenge the IRS’s position, and the right to be informed, among others.
• Seek Professional Help: If you’re not confident handling the audit yourself or if it’s a field audit, consider seeking help from a professional tax service like Dreis Tax Services.
• Don’t Ignore the Notice: If you’ve received an audit notice, don’t ignore it. The IRS will not go away if you ignore the notice, and you may incur additional penalties.

Dealing with IRS Audits

While the idea of an IRS audit can be daunting, being prepared can make the process much less stressful. Remember, seeking professional help can make a significant difference in navigating the process smoothly and efficiently.

About the Author

This blog post is brought to you by Dreis Tax Services, an established Spokane-based accounting firm. Visit our Google Business Profile to learn more about our services.