Once you send off your tax return, the only thing you may expect from the IRS is a refund. However, if the IRS flags an aspect of your return, they could inform you of an audit. While this process can seem intimidating, it’s important to remember that it’s a routine experience that can be comfortably navigated with the right strategy. If you’re facing an IRS audit, here are five tax management tips that can help you resolve the matter with as little stress as possible.

A Guide to a Simpler IRS Audit

1. Recruit Professional Help

Although it’s technically possible to represent yourself during an audit, doing so can result in many mistakes and a lengthier process. Instead, you should hire a certified public accountant. With advanced credentials and updated knowledge of tax laws, these professionals will represent your case with the IRS, communicate with the auditor, and protect your rights as a taxpayer.

2. Request Extensions Early On

Depending on the complexity of the audit request, you may need extra time to prepare your case thoroughly. Although the IRS often grants extensions, it’s essential to do so as early in the process as possible. If you don’t provide timely communication, your postponement may not be approved.

3. Organize All Requested Documents

The audit notice from the IRS will detail the specific documents they need to review to verify your return. Work with a tax management professional—such as your CPA—to secure, replace, and make copies of the requested records. When meeting with the auditor, don’t volunteer any tax documents that weren’t requested.

4. Keep Calm

The rigid and sometimes stern approach of the IRS can make auditing feel like an attack. However, you must remember that auditors are just trying to resolve a mistake in the most efficient way possible. Remaining polite and respectful will help keep the process conflict-free and allow you to build a more productive rapport with the IRS. Any aggressive or defiant actions, however, could raise red flags that may end up complicating your case.  

5. Appeal Objectionable Results

If you don’t agree with the IRS audit report, you can appeal it. Although this tax management strategy will likely not result in the total elimination of your liability, appealing can give you more opportunity to rectify errors and negotiate more favorable terms.  This process, however, requires additional filing and possible court hearings. Fortunately, your CPA can provide representation to support you at every stage of the process.

If you’re being audited, turn to Cloyd & Associates PSC in London, KY. Specializing in tax management and other financial services, these certified public accountants know the best ways to respond to audits and negotiate fair solutions for their clients. If you want to reduce your risk of an audit, these professionals also offer in-depth tax planning services that will ensure your return is ready for filing. Visit this accounting firm online to learn more about their resources or call (606) 864-8110 today to schedule a consultation with a skilled CPA.