March 20th, 2016

TAX TIP OF THE DAY...  How to prepare for an IRS audit.

Step 1:  
Don't panic.  You will not be going to jail!  
Step 2:
Never pay an IRS notice without questioning their assertions.  Be skeptical.  Find comfort in knowing that IRS letters are very often wrong.  
Step 3:
Confirm that the IRS sent you the letter (not PA or Local) by reviewing the top of the letter.  IRS audits are much tougher than PA or Local.
Step 4:
Review the letter to determine whether you have been "selected for examination" or just need to respond to the IRS's letter.  A letter response is not really an audit... and if their letter asks for more than $500, hire a professional to help.  
Step 5:
If after the above steps you determine that you are indeed being audited by the IRS and have been asked to schedule an appointment to meet with an IRS auditor...  you should identify your tax return as basic or intermediate or complex.  If your return is basic, do the audit yourself.  Otherwise you should hire a professional to help prepare for the audit, point out your vulnerable issues and to go to the audit WITHOUT YOU.  That's right, an IRS audit is like a funeral...  you don't have to go to your own.

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If you need help... www.baboiancpa.com