Prepping for a tax audit may help keep you calm

On Behalf of | Sep 21, 2021 | Tax Issues

A tax audit is when the IRS wants to ensure that an individual or organization’s financial information is in line with what they’ve reported on their tax forms. If you’ve been called in for an audit in Pennsylvania, you may be feeling a bit nervous. By making sure that you have what you need for the meeting, you’ll be in a better position to present yourself in the best possible light.

How do you prepare for an audit?

There are several things you can do to make sure that you are well prepared for an IRS audit. These include the following:

• Keeping accurate financial records is something that everyone should do. If you have been on top of this, gather all of those records together. If you’ve been lax, take the time to find all of the financial records that you can and organize them in a way that makes sense. Records include receipts, bills, invoices, spreadsheets, and anything else that paints a clear picture of your finances.
• Make sure you only answer the questions that are asked of you and answer the questions clearly and succinctly. If you don’t have the answer to a question, let the agent know that you’ll get back to them promptly with the information.
• Stay calm and focused, and don’t get flustered even if you disagree with something the agent says.
• Remember that legal representation may join the meeting with you or go in your stead.

Getting through the audit process

A tax audit can be very complicated, and you may be presented with issues that you don’t know how to respond to. It’s important to prepare well for the audit so that you can stay on track and have what you need to accurately present yourself.