This section is to clarify, simplify, and guide you through an audit process. You will find common things that the IRS will usually audit. What proof the IRS is looking for. As well as the steps and what to expect when the IRS is bothersome the most. If you would like a Tax Professional to take care of any of these letters you will need to sign a 2848 and 8821. NEVER, NEVER, NEVER BRING UP AN ADDITIONAL YEAR DURING ANY KIND OF DISCUSSION WITH THE IRS. YOU WILL GUARANTEE AN AUDIT FOR ANYTHING YOU BRING UP.WHEN YOU MAIL ALWAYS SEND CERTIFIED. YOU SHOULD ALWAYS HAVE PROOF WHEN DEALING WITH THE IRS.

The first thing the IRS will do is send you a letter. There are 3 main different kinds of letters that we will discuss in this section.

FIRST LETTER:

The letter has a table on the front that shows an increase in tax, penalty, interest and total amount. A few Pages later they will have boxes with companies and amounts. This is saying that there was income reported by the IRS that was not included on your return.

SOLUTION:

Take this letter to your tax preparer and they can easily correct this information. They will explain what is missing and how you can get it. Afterwards a simple Amendment will correct the issue.

SECOND LETTER:

This letter usually has boxes on the front with different deductions next to them. Some of the boxes will be checked. The next page or a few after will have a break down on the deductions, where they are found, and what they want you to prove.

SOLUTION:

Look at your Tax Return find the amounts they want you to prove and gather your proof. YOU SHOULD ALWAYS KEEP YOUR PROOF FOR ATLEAST 3 YEARS. The things you can use as proof are in the column to the right. After gathering your information either mail or bring to your agent. They will specify in the letter. If you would prefer a Tax Professional to do this, you may, bring the letter with you.

THIRD LETTER:

This letter will state that your tax return has been selected for an Examination. In the package that they send will have the items that they are questioning. They will have a number and an IRS agent name.

SOLUTION:

You will need to look at your tax return and compare what they want you to prove. Gather your proof that is listed to the right. You can have a Tax Professional handle the IRS or you can take care of it yourself. If you will handle the case you will need to call the Agent and setup a meeting time to go over your proof. They may ask you for additional information or an additional meeting. If you want a professional to handle it you will need an 8821 & 2848 signed and faxed to the agent.