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Begin preparing for an audit soon after receiving notice

On Behalf of | May 25, 2020 | Tax Controversies |

Receiving a notice from the IRS is something that many people feel nervous about. It can certainly be difficult for any New York resident to learn that he or she is facing an audit. Unfortunately, it is all too easy to make errors when filing taxes, and these mistakes could easily raise red flags with the government agency.

If individuals do receive notice that they are being audited, they can take steps to prepare. First, it is important to read the letter sent by the IRS to understand the type of audit involved and how the IRS agent will be in contact. In some cases, mailing documentation back is enough, and in others, a person may need to go to an IRS office, or an agent may come to the taxpayer. The notice will contain various vital information.

Because audits typically involve providing additional documents to the IRS, a taxpayer facing this ordeal will need to collect tax-related documents like W-2 or 1099 forms, tax returns, receipts for claimed deductions, bank statements, and more. The exact documents needed may depend on the specific case, but it is best to gather and go over as much as possible. Going over this information may help individuals determine where an error may have occurred.

During preparation for an audit, it may also be wise for New York residents to gain information on their legal rights. The IRS is not always correct, but facing this type of situation for a mistake on the agency’s part can still be nerve-wracking. Fortunately, experienced tax attorneys can help concerned parties understand what their IRS notice means, what the process will entail and how they can protect their interests in the event of a controversy.