07 Oct How to prepare for an IRS audit
Few things can inspire fear like an IRS audit, but preparation can help allay those fears so that things proceed smoothly when the IRS comes calling. We asked experts in law and accounting to share their thoughts on the best way to get ready for an IRS audit. Here’s what they had to say.
Greg O’Brien has represented clients with both federal and local tax issues and has helped individuals and businesses navigate the complex tax code in order to create the most tax advantageous situations.
Your best strategy approaching an IRS audit is to document, document, document. Even if you cannot find or do not have records for the time in question, a well-written, thorough explanation will go a long way with an auditor. For example, if you cannot find that travel log, try recreating it using your business calendar, and document your methodology for recreating the record.
The auditor is not required to take your written responses in lieu of any missing records or documents, but many times, this will satisfy them and prove to them you are serious about coming to a resolution with the IRS.
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