Create An Action Plan After An Audit Notice
At Ronald F. Hood, Attorney at Law, I worked as an attorney for the IRS for 25 years. I served as legal counsel to IRS special agents and assisted with all aspects of criminal tax investigations. With this insider knowledge and my experience as a Massachusetts tax attorney in private practice, I have a comprehensive understanding of the auditing process. If you have received a notice that you are being audited, you should act quickly. Here are some steps to take if you are being audited.
Consult With A Tax Lawyer
You have 30 days to respond to an audit notice. Seeking advice from a seasoned tax lawyer is imperative. I can review the notice and help you determine the reason for the audit and how it will occur. There are various reasons you may have been selected to be audited, including random selection or a computer screening. If there will be a field or taxpayer compliance measurement program audit, it is even more important to contact me as soon as possible.
Start Gathering Copies Of Financial Documents
You will be asked to provide certain financial documents to the IRS. Being proactive in gathering these documents can expedite the auditing process. Make your best attempt to gather financial documents from the last three years, including:
- Any canceled checks
- Loan documents
- Legal documents such as divorce papers
- Business travel logs
- Employment records
- Previous tax returns
Call A Tax Professional
In addition to hiring legal representation, it can be helpful to hire a tax professional. These professionals can help you identify discrepancies and explain what documents you may need in greater detail.
I Can Help You To Respond To The Notice And Appeal
Once the IRS provides you with its findings, you may request a conference with an IRS manager. You may also have the option to mediate or file an appeal if you disagree with the findings. Do not sign an audit report without consulting with an attorney first.