Robert J. Fedor, Esq., L.L.C.

What can you expect if the IRS decides to audit you?

For many people around the country, there are few phrases than can incite more panic than this: "You're being audited." While some audits may be more or less routine and are nothing to worry about, others can be more complicated.

There are many strategies for taxpayers when they are faced with an audit by the Internal Revenue Service; while reasonable people might disagree on strategies to deal with an audit, almost everyone would say that hoping that the problem goes away is not a good idea.

Another thing to keep in mind is that the initial findings by an IRS agent do not have to be the final word on the matter -- particularly when it would end up being a costly assessment to the taxpayer. Attorneys can help with appealing any decisions that are made. And while an appeal might not have to be heard in court, depending on the situation, it might be the best option.

It might also be a prudent decision to file for Chapter 7 or Chapter 11 business or individual bankruptcy. Some cases might be resolved by doing this, and it might be in the best interests of the individual or business involved to file for bankruptcy to improve their financial position.

All in all, it is important to understand that an audit is not the end of the world. Even if an initial ruling is not in your favor, you can still end up with a result less dire than what you might be fearing.

Source: IRS.gov, "IRS Audits," retrieved May 20, 2014

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