That's not how the Internal Revenue Service determines who will be audited, of course, but it does reflect the odds of being chosen: 1 in 116, according to an analysis earlier this year by Kiplinger. Those are pretty good odds, but if that finger is pointing in your direction, you want to know how to survive the coming review of your financial records.
USA Today has simple advice for anyone notified of an impending audit: "don't panic." Easier said than done, no doubt. But to tamp down rising fear, remember that some taxpayers are chosen purely at random and not because there are red flags littering their returns.
When you get the IRS letter or call telling you of the audit, there are a couple of ways for the process to unfold, the newspaper notes. Your review will be handled either by mail or in person (at an IRS office, or at your office or home).
While you can certainly represent yourself in an IRS audit, you can also be represented by an experienced Cleveland tax attorney in the proceedings. For many business owners anticipating complicated discussions and review of complex documents, it makes sense to sit down with a lawyer who has been through the audit process and ably represented clients in U.S. Tax Court.
Your anxiety over an audit should be eased, too, by the knowledge that your attorney can appeal findings of significant tax liabilities, help with tax audit process, and also help you understand other options available in your circumstances. The first step is to discuss your situation with a law firm dedicated to helping Cleveland-area taxpayers favorably resolve tax disputes.