Common Mistakes to Avoid During an IRS Tax Audit

An IRS audit is an examination of an organization or individual’s tax returns and financial information to ensure information was reported correctly to the IRS according to the tax laws. Selection for an audit do not always suggest that there is a problem, as the IRS utilizes several different audit selection methods including random selection. Request examine and set deadlines for when the responses are due.pay stubs, and more If facing an audit, a cautious and methodical approach will be essential to avoiding potential mistakes that could complicate the audit or raise red flags.

Here are some of the most common mistakes to avoid:

Lack of Preparation – Inadequate preparation for an audit may have negative consequences on the outcome. It is important to gather all necessary documents in a timely manner.

Inconsistent or Incomplete Records It is crucial to ensure that all records provided are accurate, consistent, complete, and substantiated. Discrepancies or missing information can raise suspicion or lead to further investigation.

Providing Too Much Information The necessary information requested by the IRS must be provided to achieve a successful audit outcome. However, volunteering excessive or unrelated information may open the door for additional audit issues or raise red flags. It is critical to limit your disclosure to the specific information requested and to provide concise and relevant answers to questions.

Inadequate Knowledge of Tax Laws Knowledge of the tax laws relevant to the audit will be necessary to avoid inadvertent mistakes. Enhancing legal knowledge through research or seeking guidance from a tax professional can help to ensure that accidental errors or omissions are avoided.

Ignoring Deadlines All deadlines, including information and meeting requests, should be met. Ignoring deadlines may have negative implications on the outcome of the audit.

Providing False Information Poviding false information to the IRS is a crime. Concealing required information can lead to severe penalties and legal consequences. Providing accurate and truthful information is imperative.

How Can a Knowledgeable Tax Attorney Help You?

An IRS audit can be a stressful and complicated ordeal. A knowledgeable tax attorney can help you navigate the challenging audit process. An attorney can ensure that you are adequately prepared by aiding in the collection of required documents. They can also review all information prior to submission to ensure that it is complete, accurate, truthful, and not excessive. Additionally, he or she can advocate on your behalf to protect your rights and advise you on your options before, during, and after the audit.

There is no reason for you to handle an IRS audit alone as Dallo Law Group offers skilled, experienced tax attorneys who are well trained in the IRS audit process. We have attorneys who deal and negotiate with the IRS (and other taxing authorities) on a daily basis. Contact Dallo Law Group today to discuss how our attorneys can bring you peace of mind during this difficult time.

Written By: Christopher Vanderveen