By Erica Ho, Lifehacker – April 13, 2010 at 02:00PM
The IRS plans to make more audits this year in order to make up for budget deficits. Rather than immediately surrender to the audit, the Wall Street Journal offers some tips for dealing with the government tax agency.
Photo by alancleaver_2000.
Knowing how likely you are to get audited is a good way to avoid it, but you’ve got no guarantees. The auditing process isn’t necessarily meant to be a terrible thing, but the fact of the matter is that for most people, it feels like a waking nightmare. The IRS can make errors too, so if you’re up for a challenge, the WSJ offers several tips for “fighting back”.
If you had a well-prepared tax expert prepare your return, they can help. Not only do they know all the rules, but they can also help you deal with the IRS and help you decide how far to push a fight. It should seem obvious, but being a pack rat and documenting everything will help you in your bid against the IRS.
If you feel you have a strong case but are getting nowhere with an auditor, consider asking to speak to that person’s manager. If that doesn’t help, you can take your case to an IRS appeals office, or the IRS Taxpayer Advocate Service, an IRS organization created to help taxpayers resolve problems. By some chance that you decide to take the IRS to court, you can also file a petition with the U.S. Tax Court. If you pick this route, you usually don’t need to pay the amount in dispute while your case is pending. The Wall Street Journal also has several more tips for dealing with the IRS, so check out the article for more information. Looking for a bit more help? Try this free, previously mentioned tax book.