When you have serious tax issues, you need someone who knows tax law

Getting ready for a Georgia tax audit

Many people are fearful of the Internal Revenue Service (IRS). Even mentioning those three letters is enough to cause some people anxiety. They say the worst that can happen is to receive notice that there is going to be a tax audit. An audit by the IRS doesn’t necessarily have to be a stressful experience.

Your selection for a tax audit doesn’t necessarily mean the government has flagged your case for a specific reason. In fact, many audits occur through randomized selection. Also, if you have a business partner or connection to an investor or other individual selected for a tax audit, the IRS may want to audit your tax returns as well.

A tax audit can take place via the postal mail or in person

The IRS will notify you by mail if it selects you for a tax audit. In some cases, the entire audit will take place through the mail. If you have a lot of records, you may request an in-person interview. An IRS representative may conduct this interview at your home, place of business, workplace or an IRS office.

The IRS will let you know what information and records to provide for a tax audit. When you file income tax returns, you’re required to keep all relevant documents for the tax year for at least three consecutive years after you submit your returns to the IRS. In some cases, the IRS may want to review tax returns and documents going back more than three years.

Keep organized records and reach out for additional support

If you normally keep organized tax, business and financial records, it should be easier to prepare for an audit. Things can get messy, however, if you do not have the documents or information the IRS is requesting. Try not to panic if you don’t have things like receipts. You may be able to access them through another means, like cancelled checks or bank statements.

Always review the Taxpayers’ Bill of Rights before a tax audit. This is a list of things you’re entitled to as a Georgia taxpayer, including professional and courteous treatment from IRS representatives, as well as explanations regarding why the IRS is asking certain questions and what they plan to do with information you provide. If you’re not sure how to prepare for an audit or have encountered complications during proceedings, it is best to seek experienced legal support.