A very small percentage of taxpayers ever have their federal tax returns selected for an IRS audit. However, for that small percentage of people who do get their federal tax returns selected for examination, the experience is generally a very stressful one. The experience can also be a very costly one if the tax matter is not handled correctly and promptly. When it comes to an IRS audit, the person who is under examination should not mess around and try to handle the matter on their own, because the chances are very good that the end result will not turn out in their favor. Instead, the person needs to hire a tax professional who has experience in dealing with the federal taxing authority.
There are so many layers of complexity when it comes to an IRS audit that a person who is about to be or is already being audited is at a huge disadvantage. The Internal Revenue Service doesn’t just review people’s tax returns because they are trying to make sure that things come out Even Steven for the taxpayer. They review tax returns to generate revenue. Too many times, people go into an IRS audit thinking that because they have not purposely cheated on their tax return or because they haven’t done anything wrong, that everything will turn out fine for them. However, that is a faulty belief in how things work with the tax collector for Uncle Sam.
There are several very important points to remember when it comes to an IRS audit.
- A person should never (DO NOT) represent himself or herself in the examination process with the federal taxing agency. A person should always hire someone who has experience in dealing with the tax collector for the federal government. An Enrolled Agent who has experience in the examination process is the best choice for representation.
- A person should never (DO NOT) let the person who prepared their tax return represent himself or herself to Uncle Sam in the examination process. When the heat comes down about the items that are on the tax return, the person who prepared the tax return has a big tendency to defend themselves and not the tax return. That leaves the person who is being audited at risk for bad things to happen to them.
- A person should never (DO NOT) let the IRS come to their home or place of business to sit down and go through paperwork or documents. This gives the government employees who work for the Department of the Treasury unlimited opportunities to go fishing for other things that can lead to more problems. If an employee of the Department of the Treasury has enough time, which they do, and a big enough pond, they will definitely get some fish. People should not pay for an Uncle Sam fishing trip. Instead, refer to the first thing on this list and hire someone to deal with the problem. The federal taxing authority has the power to tax and collect, so a person needs someone who has experience in dealing with them to get a good result.