6 IRS Audit Tips

Help for IRS Audits
We’re seeing an increase in IRS audits in 2011 for 2009 and 2010 returns.  Restaurants are being  audited.  Individuals with schedule Cs are being audited for travel; automobile; and meals and entertainment.
TIP ONE:  If you’re audited,  never represent yourself.   We’ve represented two tax attorneys in the past!  Taxpayers talk too much and give the IRS too much information. We’ve been retained by 3  new clients this week alone.  Each will be represented by one of two MBAs in tax.
TIP TWO: Be respectful.  The IRS  will not go away.  If the notice says reply in 10 days, reply in 10 days.
TIP THREE: Hire a representative that knows the rules but is there to win for you.
TIP FOUR:  NEVER GIVE UP ON THE NEGOTIATION.  If the IRS is correct and there is no documentation for certain deductions or if income is not reported, and  if they find it, remember you can always try to set up a payment plan.
TIP FIVE: If there is an IRS audit adjustment remember to amend the state return immediately.
TIP SIX:  Be optimistic.  Get some sleep.  We can’t guarantee anything but the last two audits we just closed, the taxpayers got refunds.