Quick Tips on Dealing with the IRS Audit

Quick Tips on Dealing with the IRS

Do you have an IRS audit? Here are some quick tips that you need to follow if the IRS is auditing you. The first thing you should do is go to IRS.gov and read the publications they have about your industry or know what you’re doing with your taxes. Read publication 1, which is very important because that is the taxpayer’s bill of rights.


The next important thing that you should do when dealing with the IRS is to contact a tax professional, a CPA (certified public accountant), or a tax attorney. When dealing with the CPA, understand that not all CPAs focus on tax issues, so it is imperative to ask that CPA if they handle tax issues with the IRS. Tax attorneys are lawyers who have chosen to specialize in tax law. Most often, these tax attorneys will have a master of law degree in taxation (LL.M) in addition to the required Juris Doctor (J.D) degree.


Questions that you should ask your tax professional before getting into your situation:

  1. What licenses or designations do you have?

  2. How long have you been in the tax business?

  3. Do you specialize in any tax issues specifically?

  4. How do you charge?

  5. Do you perform the work personally?


Once you asked the tax professional these five questions and evaluate their competency, should they answer to your satisfaction, they are well suited to speak to explain and share your situation with them. Then end with the question, “what is your assessment of my situation, and are you able to help me?


If you talk directly to the IRS, it is always important that when speaking with an IRS representative, you asked them for their name and badge number. Write down in a log what was said, note the date and the contents of the conversation, and follow up every conversation with a faxed summary to the IRS agent you dealt with. Make sure you make copies of all correspondence sent to the IRS, including copies of documentation you provided. Remember to meet all your deadlines for providing documentation.


Do not be afraid to appeal your claim until you get the proper results. If you are refused, present your research and ask where the fallacy lies. Get the IRS to cite the code section upon which it is basting its decision. Don’t be afraid to argue your point professionally without losing your temper as hard as it may be. Remember that these IRS agents are people too and have a high-level stressed job, and yelling will not work in your favor.


A final recommendation is for you to contact the taxpayer advocate service, an independent organization within the IRS. If you are a strap of cash, this may be a cost-effective alternative. Visit them at www.taxpayeradvocate.irs.gov or call 877-777-4778.

About the Author

Jacquéline Edwards is a Business Manager with over twenty years of experience for Business Pipeline, Inc, a business management firm designed to assist business owners with bookkeeping and business management needs.