Even if you turn to a seasoned professional for your tax return preparation, there’s always the chance you’ll be audited. The Internal Revenue (IRS) uses statistical formulas to determine which returns to review, so if yours deviates from normal standards, like donating more than average to charity, you could face an audit. It’s natural to stress upon hearing the IRS wants to take a closer look at your financial situation; however, if you keep the following in mind, the audit will be a breeze. 

A Guide to Preparing for an Audit 

Gather All Requested Documents 

For the audit, the IRS may require all kinds of supporting documents. You can streamline the proceedings by gathering those they’ll inevitably request in advance. This might include receipts, invoices, canceled checks, 1099s, K-1s, W-2s, and financial statements. A tax return preparation expert can review the notice from the IRS to determine what you may need. 

Review Your Rights 

Depending on the circumstances, there may be a lot of assets at stake regarding the outcome of the audit. You have the right to representation in the form of an accountant, attorney, enrolled agent (EA), or tax return preparation professional. You also have the right to courteous and professional treatment by IRS employees, as well as to privacy and confidentiality. Additionally, you deserve to know why the IRS is asking for particular pieces of information, and you may file an appeal if you disagree with their assessment of the situation. 

Track Approaching Deadlines 

Even if it turns out everything was in order, missing applicable deadlines could cost penalties or fees that can accumulate interest. The IRS typically expects to receive the taxpayer’s response to an audit notice within 30 days. Failing to submit your response within a month of the notice’s date may complicate the proceedings and reduce the chances of securing a favorable outcome. 

If the IRS wants to audit your return, turn to Cloyd & Associates PSC for guidance. Located in London, KY, this firm is proud to serve individuals and businesses throughout Laurel County. From personal tax return preparation to QuickBooks® training, they do it all. To schedule a meeting with a knowledgeable member of their team, reach out online or call (606) 864-8110.