Being former IRS Agents and Managers we can give you tax tips to help prepare you for an IRS Audit. Know from the being, never represent yourself unless you know for sure your tax records are squeaky clean. If that is the case, by all means represent yourself.

1. Should you decide to hire professional tax help, I urge everyone, hire a professional tax firm that have multiple tax professionals on staff. Many times, partners kick around  issues so you have at least two people looking at your case. Also, if your main tax representative is sick or has other issues, there is someone else to pick up the slack.

2. If you handle your own audit and a revenue agent is working your case, never meet at your business if you can help it. Meet at a neutral site. If you have it at your place of business, other employees or client/customers many feel something is wrong and start asking a lot of questions. Keep it private.

3. Make sure you contact the IRS Agent or Auditor promptly and meet all deadlines. IRS Agents many times are graded on how fast cases are closed. If you slow the process up for them, you may by at the wrong end of their wrath.

4. Be completely prepared and organized for the audit. The IRS audit letter will address issues the IRS is looking at. Make copies of documents and never give the IRS original documents. The more organized you look is a great sign you have done the right things.

5. If a tax liability is going to be owed always appeal. Many times the Supervisor does not want to have your case go to appeals and may come back and make an audit adjustment.

6. If you have to go to appeals, try to obtain documents or reconstruct tax records where a third party appeal agent may look at and think, ” I will allow this, it makes sense.”  Reconstructed records can fly with the IRS.

7. Bring only documents requested and nothing else.  This often times limits the scope of the investigation.

8. Do not bring prior year’s returns. If the IRS finds adjustments to the years they are looking at, they may want to go back further and will let you know.

9. If the audit is taking place at the beginning of a tax year do not file that year’s return. Put it on extension. If you do not, the IRS may pull the year for a tax audit.

10. Hire the most experienced tax firm you can find. Make sure they have Former IRS Agents on staff.