In the opinion of Advocate Shahid (Tax Law Research & Advisory Specialist). An IRS Audit Process starts with a notification letter that requires documentation, typically of returns that have been filed in the past three years. The notice must be reviewed by taxpayers, documentation collected and submitted within the deadline. Audits can be done through mail or face to face interviews (office/field) and end with a report of recommended changes.
Important IRS Audit Process
Step 1: Notification and Review
Giving Of Notice
You will not get a call over the phone, but there will be a letter that will be written down and sent to you by mail, telling what is being inquired of.
Identify Type
The notice shall indicate the type of audit being a mail audit or an in-person audit (office or a field).
>Review Scope: Decide the tax year and the specifics of the line items that need to be reviewed (e.g. deductions, income).
Step 2: Document Preparation and Gathering
Gather Records
Observe receipts, bank statements, canceled checks, and other documents that can document the items at issue (e.g. invoices).
Organize
Make sure that papers are organized and to point on matters in audit letter.
Consider Representation You can represent yourself or an enrolled agent, attorney, or CPA can represent you.
Step 3: Respond to the IRS
Meet Deadlines: Responded within the time limits that have been provided in the letter.
Send Copies
Photocopies of documents in place of original records are to be sent, unless otherwise.
Extension Requests
To have an extension please call the number on the letter to request an extension.
Step 4: The Examination Process
Mail Audit
Send the documents to the designated IRS center. This is as regards individual income returns.
Face-to-Face Audit
This is the one that will make an auditor review your records in an office or a business premise.
Information Document Request (IDR)
It may involve additional enquiries of information by the auditor and you must respond accordingly.
Step 5: Re-evaluate Change Proposed
Audit Report
IRS will eventually submit to you a report (Form 4549 or any other report) of how the IRS would change to reflect on your tax return.
Concur
Sign report and pay any tax, interest or penalties in case of agreement.
Disagreement
In the event of disagreement, you can request to have non-formal meeting with a manager or appeal within 30 days.
Step 6: Finalization
Should no agreement be reached, you will be informed of the deficiency statutorily and may go to Tax Court.
Individuals may also request reconsideration under audit reconsideration once you realize errors at a later point.
What Triggers an IRS Audit?
An IRS audit may be caused by a range of factors, such as income verification, deductions verification, and an in-depth analysis of tax returns. The IRS is very attentive to reported income, particularly where it seems to be inconsistent with third party information or industry standards. Tax claims are also reviewed to make sure that they are valid and sufficiently justified. Excessive deductions in relation to income, particularly those in categories such as business and charitable deductions are warning signs.
How the Examiner Review Process Works
Being an examiner means reviewing the taxpayer documents submitted by the taxpayer and reviewing them against other records and analyzing any differences. In case unusual patterns or errors are found by the IRS, it has the right to open up an audit. The examiner will ask them to provide the supporting documents and might need to explain particularly something.
Why Some Taxpayers Are More Likely to Be Audited
Certain taxpayers are more prone to audit when there are high discrepancies in their filings, when their deductions are unusual or when they belong to a category that the IRS identifies as high-risk, including high-income earners or the type of business owners.
IRS Audit Steps: Step-by-Step Process
IRS Audit by Mail
Correspondence audit process is where the letter is sent by the IRS to a taxpayer requesting further documentation or explanation of certain things in their tax return. This is generally the least intrusive type of audit and may in most cases be rectified through the posting of the requested documents or explanations. The IRS will declare the documents required and give the deadline to turn in. One should react quickly and correctly in order to prevent escalation.
Office Audit
In case of a visit to the office of the IRS, the taxpayer would visit the IRS office to present the documents and answer the questions regarding their tax return. The IRS inspector will check the records that you carry along with your income reports, your deductions and expenditures. To get ready, collect as much related documentation as possible such as receipts, bank statements and tax forms. It also is useful to have a tax professional that can help guide you through it.
Field Audit
IRS field audit- This audit is performed by an examiner who is sent to your house or business to peruse records. This form of audit is normally used on complex cases or businesses. The investigator will review your financial documents, question you and your employees (where applicable), and can refer to other places or properties of the business. A field audit should be prepared by extensive documentations such as financial statements, tax returns and any other documents to support any deductions claimed.
IRS Notice Response and Documents You’ll Need
As part of the process of IRS audit, the examiner will demand certain documents to confirm the information that you provide in your tax return. Typical documents that are required are support tax documents like W-2s, 1099s and other income statements, business expenses, charitable donations or other deductions receipts. Bank statements and financial records are also mostly necessary to verify the correctness of the reported income and expenditure. Also, the IRS can request any additional records to support large or unusual deductions including medical bills, travel expenses, or investment rewards.
Importance of Providing Accurate and Timely Responses
The responses to the IRS audit letter and documentation request should be timely and accurate. The inability to present the requested documents or incomplete or incorrect information may cause the delay of the audit process and can lead to fines or further questioning. Being fast to respond demonstrates that you are ready to cooperate and it also facilitates the flow of the audit. Also, proper documentation will make sure that you defend your rights and will not face unwanted financial implications. Using a tax professional can assist in making sure that your answers satisfy the IRS rules and that you have them properly filed.
Proposed Tax Changes and Audit Findings
The examiner can suggest changes in taxes once discrepancies or errors have been identified after reviewing the materials he was given during the IRS audit. These adjustments normally involve the modifications in earnings, reductions, or credits which you include in your return. In case there are some extra taxes owed, the IRS will send a tax deficiency notice and give their proposed changes and the balance. The notice will also specify how the IRS determined the amount of the deficiency and how to respond.
Disputing IRS Audit Results
The results of the audit can lead to further taxation, the overtime tax can include fines and interest on the debt. In case you do not agree with the findings or the proposed changes in taxes, you have a right to contest them. The IRS has a number of resolutions, which may include an appeal to IRS Independent Office of Appeals, or a petition to the Tax Court which is not always available. To be able to defend your position properly, it is necessary to revise the results of audit, collect any evidence, and submit it according to the timeframes given. It may be beneficial to hire a tax professional and work through the dispute process to decide what is the best course of action.
IRS Appeal Rights and Resolution Options
You are entitled to the rights of IRS appeal in the case that you do not agree with the findings of the audit. The IRS also offers various options on dispute resolution, which enables taxpayers to dispute audit results and demand a reasonable solution. In case you are of opinion that IRS has erred in its evaluation, you can officially seek to have your case assessed.
Role of the IRS Independent Office of Appeals
Requesting a review in the IRS Independent Office of Appeals is one of the main ways of resolution. This office does not belong to the auditing division and will make an objective examination of your case. When you decide on this option, the facts and documents of your case are going to be reviewed by the appeals officer who may offer to settle. A Request for Appeal should be filed within 30 days, after the IRS notification of proposed changes in taxes. A tax professional can be hired to assist in the filing of the relevant documents and presentation of the case.
Statutory Notice of Deficiency and Tax Court Petition
In case you cannot agree based on the IRS appeals procedure, a statutory notice of deficiency, also referred to as a 90-day letter, will be issued by the IRS. This letter formally notifies you of the ultimate decision, and you may appeal to Tax Court in the event that you do not agree. In order to do so, you have to petition within 90 days of being notified. By petitioning Tax Court, you will be in a position to bring your case before a judge, and the ruling will be final. In case you have to dispute the decision of the IRS on the matter in court, it is strongly advisable to seek the services of a tax lawyer to help you through the legal tangle of the process.
Understanding IRS Form 4549 and Closing the Audit
The form that is filled in by the IRS to recap the findings of the audit and to present any changes that need to be made to your tax return is IRS Form 4549. This form contains information on the findings of the IRS, including modifications of the income, deductions, and credits and the final tax liability. After the audit process has been finalized, the Internal Revenue Service (IRS) will send out a final letter which will mark the official end of the audit. The final letter gives the confirmation on the adjustments and the existence of extra taxes. This document should be reviewed carefully because it will indicate the outcome of the final audit and the balance.
Additional Tax Assessments and Payment Options After Audit
Should there be subsequent tax assessments based on the outcomes of the audit, then you will have to pay the difference between the taxes owed and the ones paid. Fortunately, it has a number of payment plans to be used to cope with the financial burden. In case you cannot afford to pay the entire amount, you can use installment plans, where you can pay the tax that was determined to you according to installments of every month.
Moreover, taxpayers can obtain offer in compromise settlements, according to which you are able to pay a smaller sum of money than the total sum of money you are supposed to pay as your tax charge. To exercise these opportunities, it is significant to file the necessary forms and documents to the IRS to determine your rights to payment arrangements. Paying a tax expert to consult may be useful to identify the most favorable payment plan depending on your case.
How Long Does the IRS Audit Process Take?
The IRS audit process usually takes some months and can be different according to the same depending on the complexity of your case and the kind of audit that is being undertaken. The process of the first get-noticed audit to the last resolution may take a span of a few months and even more than a year. The timeline stages start with you being provided with a Notice of Audit by the IRS which stipulates the kind of documents and information they require. Once the necessary information is received, the IRS will go through the paperwork, and you can be asked to provide more information or explanations.
How Long Various Types of Audits Take
Mail Audit (Correspondence Audit)
This is the fastest form of audit that is normally found. The process usually takes 2 to 3 months because it entails IRS writing to you asking to provide further details or clarification. As soon as you provide the necessary documents, the audit may be closed comparatively fast, as long as you do not have significant discrepancies.
Office Audit
An office audit will normally require 3 to 6 months. You will be requested to meet with an office of IRS to furnish additional documentation and perhaps a discussion of your case with an IRS examiner. It involves authenticating your financial records and it might be more time consuming when you require further research or clarifications.
Field Audit
Field audit is the most time consuming form of audit which may take 6 to 12 months or even more. The IRS examiner is allowed to visit your home or business to facilitate reviewing records physically and this may entail several meetings and inspection. It is a more elaborate process and it is possible that a number of follow-up acts will be needed to close the audit.
Audit length may vary based on the speed of your responsiveness on any request, the nature of your taxes, and the case workload of the IRS.
How to Survive an IRS Audit
To withstand an IRS audit, one needs to be prepared, organized and calm. The following are some of the tips which can be taken to go through the process:
Keep Your Records in Order
Have all of your records, including tax returns, receipts, bank statements and other financial records in order and easily accessible. This will assist in acting immediately on IRS requests.
Respond on Time
There is never a deadline that is met. The IRS anticipates prompt responses and lack of the same may delay the audit process or result in penalties.
Be Truthful and Open
In case you make an error in your tax returns, come clean. Certainly, by cooperating and providing correct information, the IRS is more likely to cooperate with you.
Check It All
Check all the documents before handing in to make sure that they prove what you are claiming. This may prevent additional queries or conflicts in the audit.
The Importance of Professional Help
Sailing through an audit can be difficult in itself, and this is the reason why the assistance of a tax professional is required. The various professionals can help in the following way:
CPA of IRS Audit
A CPA (Certified Public Accountant) can assist in the technical side of the audit. They know how to read between the lines of the tax laws and find the loopholes, as well as how to case your cause in such a manner that it meets the rules of the game in IRS.
Analyzed for Audit Help
An Enrolled Agent (EA), is a tax expert licensed by the IRS to act as a representative to taxpayers in regard to audit representation. EAs will be able to deal directly with the IRS on your behalf, do your paperwork, and assist you in interpreting IRS notices.
IRS audit Tax attorney
When your audit includes complicated law matters or the possibility of criminal charges, a tax attorney is essential. They are able to offer advice on legal matters, that your rights are not violated and even guide you through the various legal consequences that come during the audit process.
A tax professional can be a great difference in having an easy process of the audit and reducing tax liability.
IRS Audit Process for Small Businesses and Self-Employed Taxpayers
Individuals who are self-employed and/or own small businesses are subject to special factors in the face of an IRS audit. The audit procedure with these people is more involved because the IRS does not only conduct audit on the personal tax returns but also investigates business related records, expenses, and deductions.
In the case of small business owners, the IRS can also examine business expense such as travel, meals, entertainment and purchases of equipment to make sure that it is reasonable and essential to the business operation. Self employed people also have to declare their income properly and keep good records of their businesses and this includes invoices and receipts as well as contracts.
The IRS audit of business involving small business might also entail examination of the balance sheet and profit and loss statement, examination of income generated by clients or customers and assessment of any deductions claimed by the business like home office expenses, business mileage or wages paid to employees.
Unique Challenges Faced by Freelancers and Independent Contractors
Independent contractors and freelancers usually have some peculiar issues with the IRS audit. The primary challenge is to establish the truthfulness of income and deductions since these workers do not necessarily have W-2s and usually use 1099 forms. The IRS could also take a keen interest in inspecting freelance income to check whether it is what clients or customers report.
The other complication is the deductions taken by freelancers which may be harder to prove in the absence of the relevant documentation. This contains allowances on home office areas, supplies, and business travel. Freelancers also have a problem with demonstrating the necessity of certain expenses to the business, particularly when they work at home or use a car with mixed purposes.
It is important to be able to distinguish perfectly between personal and business costs. Besides, freelancers and independent contractors might not be as organized as larger businesses, which can complicate responding to an audit. Such people must keep the records very clean and consult with tax professionals so as to avoid traps during an audit.
IRS Audit Reconsideration and Final Thoughts
You may also seek an audit reconsideration in case you do not agree with the results of your IRS audit. This will enable you to introduce new pieces of evidence or information that were not available at the time of the initial audit. To seek reconsideration, you are to use a formal written request to the IRS, and present the revised documents or information in your support. The IRS will examine the materials and can modify the audit results according to this new evidence. It should be mentioned that such request should be given within a reasonable time frame after the audit results received, which usually is within three years of the audit decision date.
In case the reconsideration request is granted, the IRS can change its initial verdict. Nevertheless, you still feel not content with the decision, you can consider additional possibilities, including appeals and petitioning Tax Court.
Real-Life Examples of IRS Audit Process Step by Step
The following are some of the real-life examples to show how IRS audit process usually operates:
Example 1: Correspondence Audit (Mail Audit)
Step 1: Receiving the IRS Notice
The case: Jane is a freelancer, who records her freelance revenue and the expenses incurred in her home office, on business materials and even on traveling. She is sent a notice by the IRS referring to the audit of her home office deduction.
What Happens Next: Jane reads through the letter and realizes that the IRS requires additional documentation on the house office deduction to prove its validity.
Step 2: Gathering Documents
The relevant documents that Jane gathers include:
- Pictures of her office at home.
- Utility bills to demonstrate the percentage of her home that is used in business.
- Office suppliers receipts.
Step 3: Responding to the IRS
Jane drafts a comprehensive reply, includes the documentation required and forwards it within the deadline as indicated in the notice.
Step 4: IRS Review and Resolution
In a few weeks, the IRS evaluates the filing made by Jane and finds that the home office deduction is valid. She gets a letter stating that the audit is complete and no adjustments to her tax return.
Example 2: Office Audit
Step 1: Receiving the IRS Notice
Scenario Mike is the owner of a small consulting firm. He claims his tax returns with his business expenses such as meals and traveling of the clients. An audit notice is requested by the IRS asking the business to provide further documentation of the business meal expenses.
What to do next: Mike is ordered to make an appointment with an IRS office and bring his business records such as receipts and bank statements.
Step 2: Preparing for the Audit
All the required documents compiled by Mike are:
- Receipts for meals
- Client meeting notes
- The purchases reflected in credit card statements.
Step 3: Meeting the IRS Examiner
Mike comes to the office audit and has an interview with the IRS examiner. The examiner goes through his receipts and questions him concerning business meals.
Step 4: IRS Review and Resolution
Upon perusal of the documents submitted by Mike, the examiner affirms that all costs of meals were not directly connected to the business, and therefore, there will be a slight deduction in tax liability. Mike receives the notice about the adjustment and remits the extra amount. The audit is closed.
Example 3: Field Audit
Step 1: Receiving the IRS Notice
The scenario: Sarah is a construction company run by her family. IRS issues a field audit notice because of irregularities in the expenses that she records in her business mainly subcontractor payments and huge expenses on vehicles.
What the Future Holds: Sarah is told that an IRS examiner will come to her company to investigate the financial documents.
Step 2: Preparing for the Field Audit
Sarah is ready: she gets ready:
- Subcontractor payment invoices.
- Vehicle logs
- Comprehensive business costs.
- Bank accounts indicating payments to subcontractors.
Step 3: The IRS Field Audit
The IRS auditor comes to the office of Sarah to perform the field audit. The examiner reviews her records and poses questions concerning particular subcontractor agreements and the usage of vehicles.
Step 4: IRS Review and Resolution
Upon thorough examination, the examiner determines that not all expenses bearing on the payments made to the subcontractor have been classified, and Sarah is owed extra taxes. Sarah is given a Notice of Proposed Adjustment that outlines the changes. She may either agree with the findings, negotiate, or ask a rethink in case she is not in agreement.
Example 4: Audit Reconsideration
Audit Reconsideration: An example of this entails the reconsideration by the auditor of transactions previously retained by the company.
Step 1: Receiving the IRS Notice
Situation: David is an independent contractor that just experienced the IRS audit, and was told that he was owed extra taxes because he had failed to report the income of some of his clients. He does not agree with the findings since he feels that he has given all the required documents.
Step 2: Requesting Audit Reconsideration
David also sends a request of reconsideration of the audit with the missing documentation (e.g. invoices, payment receipts and other evidence of earnings made to clients). He forwards it to the IRS office that offers his case.
Step 3: IRS Review
The IRS reexamines the new documents and accepts that David had indeed disclosed all of his income with accuracy and the initial examination was erroneous.
Step 4: IRS Resolution
David is informed in a notice that the audit reconsideration is passed, and the extra tax is reversed. The audit is closed with no further tax being payable.
Real Case Studies of of IRS Audit Process Step by Step
Case Study 1: Freelance Writer’s Correspondence Audit
Step 1: Receiving the IRS Notice
Background: Susan, a freelance writer claimed her freelance income and deducted her home office expenses as well as business expenses. She is given an IRS audit notice inquiring her office deduction at home, where the figure was high regarding her income.
Step 2: Preparing Documentation
Susan examines the notice and prepares all the necessary documents including:
- Images of her home office design.
- Utility bills indicating the amount of her home that was used as a business.
- Office purchase receipts and other purchases.
Step 3: Responding to the IRS
Susan mails the documentation following the timeline requested by the IRS in correspondence audits.
Step 4: IRS Review and Resolution
Her deductions were accepted by the IRS after the review of the documentation. The audit was closed without any additional problems and Susan did not have to pay extra taxes. This was a letter to confirm that the audit was closed.
Case Study 2: Small Business Owner’s Office Audit
Step 1: Receiving the IRS Notice
Background: John, a small business owner in the landscaping business, purported to claim a business deduction on salaries of employees, tools, and equipment. He is sent an IRS audit notice that asks additional information regarding the equipment deductions.
Step 2: Preparing Documentation
John is directed to produce paperwork to the IRS office. He prepares:
- All statements of all tools and equipment bought.
- Employee payroll records.
- Maintainance equipment invoices.
Step 3: Meeting with the IRS Examiner
John on his part visits the office audit and shows his documentation. The IRS examiner requests an explanation of the deduction of maintenance of equipment and whether all the expenses are personal expenses.
Step 4: IRS Review and Resolution
Some of the equipment maintenance deductions made by John are modified by the examiner, but as a whole, the audit does not make a significant change to his tax return. John accepts the suggested changes and reinstates the required payments. The audit is formally closed and only with minor modification on his tax liability.
Case Study 3: Independent Contractor’s Field Audit
Step 1: Receiving the IRS Notice
Background: Michael is an independent contractor who was notified that he would be audited in the field because of inconsistencies in the expenses he reported in his business, such as travel expenses and payments to subcontractors. The IRS observed that the reported amounts did not correspond to the third-party information and this required some clarification.
Step 2: Preparing for the Field Audit
To prepare for the field audit, Michael prepares the following:
- Payroll records of subcontractors.
- Business travel receipts and flight tickets.
- Bank statements depicting payment to subcontractors.
Step 3: The IRS Field Audit
An IRS auditor comes to the office of Michael to inspect the business files. The investigator poses questions concerning the essence of subcontractor payment and travel expenditures. They go through the records of Michael closely and even demand contracts with subcontractors.
Step 4: IRS Review and Resolution
Upon inspection of the documents, the IRS concludes that a portion of the travel expenses were wrongly classified as business-related. The IRS suggests some changes to the tax filing of Michael, which will result in a higher tax owed to the government. Michael challenges certain of the adjustments and has additional evidence that some of the traveling expenses were legitimate business expenses.
The IRS takes the evidence provided by Michael and modifies the changes, which caused minimal increase in his tax bill. Michael will accept the new price and pays extra tax.
Case Study 4: Taxpayer Requesting Audit Reconsideration
Step 1: Receiving the IRS Audit Decision
Background: Laura is a small business owner who experienced an IRS audit during which the auditor identified inconsistencies in the expenses and income reporting in her sole proprietorship. The IRS gave her a notice of tax deficiency, which implied that she had to pay extra taxes as a result of underreported income.
Step 2: Requesting Audit Reconsideration
Laura does not agree with the results and requests the IRS to reconsider the audit. She adds new evidence which was not accessible at the initial audit, including:
- Bank reports of unreported income.
- Invoices to services offered which were overlooked.
Step 3: IRS Review and Resolution
The reconsideration causes the reduction of the additional taxes owed.
The IRS writes a letter that documents the revised tax valuation and the audit is closed without any further modification.
Case Study 5: Complex Business Owner’s Field Audit and Appeal
Step 1: Receiving the IRS Notice
Background: Robert is a restaurant chain owner, and he was sent a notice of field audit. The IRS was challenging some of the big deductions on meals, wage bill of the employees and expenses of expanding the business.
Step 2: Preparing for the Audit
Robert is preparing the audit by arranging:
- Detailed financial statements and profit / loss statements.
- Payroll records of employees and tax returns.
- Expenses Receipts for business related expenses such as meeting client meals.
Step 3: The IRS Field Audit
IRS auditor comes to the business premises of Robert and goes through the records and talks of the deductions made by Robert. In the audit process, the IRS raises some questions on the validity of certain meal expenses and business trip travel expenses.
Step 4: IRS Review and Resolution
The IRS suggests making substantial changes to the deductions of Robert, which will lead to a huge tax bill. Robert feels that part of the changes is erroneous and he appeals the decision of the audit.
The IRS Independent Office of Appeals accepts the appeal submitted by Robert after he has provided the required paperwork. The IRS upon review again modifies the proposed tax shortage and decreases his tax liability.
Robert finally accepts the amended figure, pays off the audit, and the case is closed.
FAQs (IRS Audit Process)
What triggers an IRS audit?
The following are some of the factors that may cause an IRS audit, not all can be listed, but some of them are: suspicious deductions that appear excessively high given your income, unreported income, the information you report does not match that which the IRS gets through third-party sources, and round numbers. Moreover, huge charitable contributions or business loss claims may also cause red flags.
How does the IRS audit process start?
The audit procedure is normally initiated by a mailing of an IRS audit notice. In this notice, the elements of your tax return that are under inquiry are described and instructions are given on the materials that should be sent. At that, you will have to prepare and file the requested documents, including income statements, receipts, or any other supporting tax records, in a timely fashion.
What should I do after receiving an IRS audit notice?
Prepare all the paper work including tax returns, receipts, bank statements and any other supporting papers. Meet the time limits given to avoid inconveniences or extra fines. It is also advisable to outsource the services of a tax expert who can take you through the process.
Can the IRS audit me by mail?
The IRS may conduct an audit, which is a correspondence audit, by mail. The least invasive form of audit, yet you are going to be obliged to provide the requested documents or explanations. Be comprehensive and prompt in your reaction so that you do not complicate matters.
What is the difference between an office audit and a field audit?
Such audits are not as intrusive as field audits but can involve more than one visit. Field audit, however, is an audit that entails an IRS examiner visiting your business or home to look at records. This is a more comprehensive form of audit that is commonly used with more complicated cases. Both categories are done by preparing your tax records, although a field audit can also need additional logistical planning.
What records do I need for an IRS audit?
In case of an IRS audit, you will probably be required to submit a variety of attesting tax materials, such as income records (W-2s, 1099s), receipts of business-related expenses, bank statements, and documentation of deductions (e.g., medical bills, travel expenses). Make sure that you make copies of your charitable donations, investment and other items that you had claimed in your tax return.
Can I get professional representation during an IRS audit?
Yes, you may have a professional representative like a CPA (Certified Public Accountant), enrolled agent or other tax attorney to represent you in an IRS audit. These professionals may assist by providing expert advice, staying in touch with the IRS on your behalf and make sure that overall your audit is conducted effectively and correctly. Their intervention can be used to make sure that the rules set by the IRS are adhered to, and that your interests are safeguarded in the entire process.
<h3>Can I appeal an IRS audit decision?
Yes, you may appeal against the decision of an IRS audit. In case this does not sort out the problem, you cou
ld petition the Tax Court to appeal against the findings. One should move fast because there are time limits of filing an appeal or a petition.
Final Thoughts
The IRS Audit Process can seem strenuous and hectic but with proper preparation and proactiveness, one can navigate the entire process with a sense of assurance. It is important to maintain a good system of storing your records so that you can have all the required records to substantiate your tax returns. Properly kept records enhance easy response to IRS requests and lessen chances of mistakes or time wasted.