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It’s a fear of most people that some day they will get a letter from the IRS stating that they are being audited. What should you do now that you have got this letter?

If is understandable that you may be scared about meeting with the auditor, but the best advice you can get is to not panic. Gather all your expense receipts and accounting records together when preparing yourself. Be careful to get all the information together and try not to worry about what the auditor will say or do. You can only control what you can control.

Prior to you deciding to put it to the side for a later date, take a few moments and start planning how you’re going to respond to it. Get on the phone with the IRS and determine what is happening and at what time are they wanting to review your paperwork. This is an easy phone call that may assist you in determining what information you will need to get together before the meeting.

Likewise, bear in mind that the IRS representative that answered the phone is just doing their job. It’s neither their fault or yours that you are getting audited. Provided you have been honest about your financial information you shoould not have anything to worry about.

If you discover that you will need some additional time don’t be afraid to ask for an extension. In many circumstances the auditor will grant this extra time, particularly if you have been honest with the auditor and have not been difficult to work with. But if you wait to call until the last minute, you run the risk of not getting an extension and having no time to come up with the information needed. Just explain your situation to them and why you need the additional time to get the information together.

Closing Comments

Finally, it’s important to recognize that just about all audits are merely called for because of small mistakes. You probably added up or deducted incorrectly, or wrote down the information on the wrong line. That type of matter happens daily. This audit advice is to not be afraid, be honest about what is going on, and then fix the mistake. By approaching the situation with a positive attitude, the IRS auditor will be willing to work with you. Despite popular belief they are human too.

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