A Basic Guide to Experiencing an Audit

AuditPicOne slip in the mail that no one wants to receive is an audit slip. During tax time, one of the most common worries is making a mistake. Mistakes tend to be the precursor to triggering an IRS audit. If you are wondering what it’s like to get audited, here are some of the steps that occur.

The Letter Will Arrive in the Mail

If an audit will happen, you will get a letter in the mail. The letter will come directly from the IRS. They will let you know that you are being audited and how to set up a meeting with your auditor. Set up the meeting and be sure you have time to collect your evidence before then.

Meeting with an Auditor

The peak of the audit will be a meeting with the IRS auditor.  You and the auditor will meet at the appointment time that you have made. The IRS auditor will go over your tax returns for the year and years prior. You will need to produce any evidence of your income, expenses, and write offs at this meeting. This can be in the form of receipts and other proof of payment.

Receive the Assessment

Once your audit is over, the agent will file a recommendation and you will receive the results. One result could be the assessment of additional taxes owed. Another could be that your tax record is correct and clean. If you owe further taxes, you should get in contact with the IRS to pay them.

Image credit: Lending Memo

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