You were recently informed that the IRS plans to perform an audit. On You. Yep, you. This hasn't happened to you before. You're nervous, you don't know what to think, what to expect, or who to call. Should you call someone? What should you do?
Prior to your audit, try not to panic and instead, start getting things together. How do you prepare? Well, there are a few ways to make it through an audit successfully. First, start gathering all of the tax documents, wage information and reports that pertain to the period in question. Your job is to show the IRS that all of your earnings have been reported.
You won't be able to prove this if you are unable to show all of the check slips, payment statements and other evidence of your earnings. You will additionally need to prove that you are actually qualified for each of the deductions or exemptions that you've claimed. Organize all of the documents that were used as part of the filing process so that no questions remain unanswered.
If you consulted with a tax advisor, accountant, or financial planner, give them a call immediately. Explain the situation and make sure they provide you will all of the documents they used to file your taxes to the state and the federal government.
If you require additional time to get everything together, ask for an extension or see if you can have the audit delayed. Try not to rush through this process but rather, be sure that you have everything for properly supporting your tax claims.
Try to keep realistic expectations for this process. You should actually attempt to lower your expectations if you can. During an audited, you have a very high likelihood of having to pay additional monies out. It is rare for people to get through audits without facing a larger tax debt. The ultimate goal is to simply minimize this added debt. Through proper organization, preparation, and a willingness to be honest about your finances, you can limit the amount of harm and stress that an audit causes in your life.
Prior to your audit, try not to panic and instead, start getting things together. How do you prepare? Well, there are a few ways to make it through an audit successfully. First, start gathering all of the tax documents, wage information and reports that pertain to the period in question. Your job is to show the IRS that all of your earnings have been reported.
You won't be able to prove this if you are unable to show all of the check slips, payment statements and other evidence of your earnings. You will additionally need to prove that you are actually qualified for each of the deductions or exemptions that you've claimed. Organize all of the documents that were used as part of the filing process so that no questions remain unanswered.
If you consulted with a tax advisor, accountant, or financial planner, give them a call immediately. Explain the situation and make sure they provide you will all of the documents they used to file your taxes to the state and the federal government.
If you require additional time to get everything together, ask for an extension or see if you can have the audit delayed. Try not to rush through this process but rather, be sure that you have everything for properly supporting your tax claims.
Try to keep realistic expectations for this process. You should actually attempt to lower your expectations if you can. During an audited, you have a very high likelihood of having to pay additional monies out. It is rare for people to get through audits without facing a larger tax debt. The ultimate goal is to simply minimize this added debt. Through proper organization, preparation, and a willingness to be honest about your finances, you can limit the amount of harm and stress that an audit causes in your life.
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