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While the chances of getting an IRS audit letter are typically slim, it's better to be prepared in case the agency wants to take a closer look at your finances. First, don't panic. Then, turn to an expert who specializes in IRS tax audits. With more than 25 years of extensive experience, Brian Kawamoto in Aiea, HI, is the tax attorney individuals and business owners continue to rely on for guidance. This includes matters dealing with the IRS and state tax agencies. Among the most common fears of any taxpayer is getting a dreaded audit letter in the mail. Here are a few steps to take should you ever receive the correspondence.

What to Do After Getting an IRS Tax Audit Letter

Determine What's Being Asked

Re-read the letter to find out exactly what the IRS is requesting. The agency may just need something minor such as clarified figures listed on your income tax return. Generally speaking, an audit may only target one area in question. For instance, reported deductions or income fluctuations might require additional review. Pinpoint what the IRS is seeking in the letter and proceed to the next step.

Gather All Supporting Documents

This is where keeping receipts, invoices, and other documentation can help an audit go more smoothly. After you've determined what the IRS is requesting, gather all of your supporting evidence. There may be scenarios where documents aren't available. You can ask a third-party to provide copies to back up your claims. Because the IRS can perform audits on income tax returns going back three years, you should keep files going back at least until then. To be safe, maintain all documents for five years by scanning them as PDF files.

Don't Procrastinate or Ignore

IRS tax auditsIf you receive an IRS tax audit letter, be sure to respond to it by the requested deadline. One of the worst things you can do is ignore the letter. Inactivity sends a red flag to the auditor that something is amiss. If your income tax return was prepared by a tax attorney, they will be a valuable resource if you have to meet with the auditor. The reputable ones will speak on your behalf and know the professional lingo needed to communicate with auditors.

Dealing with the IRS can be intimidating. But the exchange doesn't have to be if you're proactive and prepared. As an experienced tax attorney, Brian Kawamoto can provide you with a wide range of tax relief services, including offers in compromise and dealing with IRS levies. If you're facing an extraordinary tax situation, call (808) 486-6107 to arrange a consultation. Visit the website for information on other IRS-related services.

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