An IRS tax review doesn’t indicate you have done something wrong. Every taxpayer has to be prepared for a tax review notification. Rather than feeling concerned about what you did wrong, it is sensible to take some crucial steps.
Gather all the records
Have EVERY pertinent document verifying any exemptions or deductions claimed on the returns. It is a time-consuming process, so get started as soon as possible, especially if your records are not organized or missing. Review bank statements and compare them with tax returns to ensure that every income is reported.
Research
IRS publication doesn’t represent all nuances of the law. The IRS is not needed to follow but you need to do some research that explains tax audit procedure, taxpayer rights, appeal process, etc.
Hire tax professionals
It is the best time to take assistance from tax professionals, especially when a huge amount is involved. A reliable tax lawyer can help you in case of questionable reporting that instigated the audit.
Never volunteer to share information not asked for
It is a good thing to cooperate with the tax auditors but NEVER share anything not asked for. There are chances that you will provide details that trigger extra queries and due taxes. Therefore, it is essential to have a tax lawyer on your side.
Request for some time
You can get extra time for preparation but if the request is for more than a month then it will not be granted based on your reasoning and circumstances. The audit process will be on the business site, at your home, IRS office, or on the phone. The IRS review team determines the location based on the case complexity. You can even request a change but routinely, it will not be granted.
Be wise and start preparing for the IRS review as well as hire a tax litigation lawyer ASAP!
