How to Win an IRS Audit
Winning an audit might seem impossible. However, tax attorneys, outsourced accountants, and CFO advisory services can help take the frustration out of the process and ensure you come out on top.
The IRS isn’t easy to outsmart but you don’t have to feel like an audit is the end of the world. If the IRS decides you made an error on your earnings and deductions you can still prove they’re the ones who made a mistake. You will also have some distinct advantages over the IRS personnel who handle your case.
1. Outwait the IRS
Your first line of defense is the delay. The IRS will likely have already built its case for your audit but you can request a delay to build your defense against their allegations. The best choice here is to make your appointment as far away as possible. A few days before the appointment, you can have your attorney postpone the audit appointment.
You can also delay your appointment by accidentally misplacing a few documents. A tax attorney should also know when the IRS wants documents you’re not required to provide them. If the IRS requests documents that include tax returns from years past or that aren’t part of the audit, you won’t have to provide them.
You can be polite when dealing with the IRS but you don’t have to provide these documents. Since IRS often handle multiple cases at once, they receive a lot of pressure to conclude cases as soon as possible. If you slow them down without giving them a specific reason, they will likely want to conclude your case faster.
2. Reveal the IRS’s Errors
If you have a tax attorney, they will be able to examine your case in close detail to discover any mistakes they made. Tax collectors often make mistakes due to the number of cases they oversee. Having a tax attorney by your side ensures you can keep the IRS honest with its assessments.
3. Keep the IRS Honest Throughout the Audit Process
If you have a tax attorney, you can keep the IRS honest throughout the audit process. Your auditing agent might have applied the wrong rule to your case, placed some of your income in the incorrect category, or missed some deductions. Your tax attorney will be able to identify these mistakes.
The IRS auditing agent might also misinterpret the tax law or mistreat you. If an auditor mistreats you by acting abrasive or aggressive, you can ask to speak to the auditor’s manager. This will immediately end the appointment process and institute another delay You might also have another auditor assigned to your case. In this case, the new auditor will likely have to start from the beginning.
4. Challenge the Examination Report
At the end of your audit, you should receive an Examination Report. The Examination Report is a summary of what the auditor discovered in your case and the conclusions they reached. If something doesn’t seem correct with your audit, your attorney will speak with the auditor to ask for the proof needed to change the results. Your tax attorney will likely request 30 days to provide the necessary information.
The auditor might also refuse. However, the manager might be under pressure to close the case quickly. If your dispute is reasonable, your tax attorney might be able to work out an agreement in your favor.