The IRS is an independent agency of the U.S. federal government that collects taxes, enforces tax laws and social security rules, and provides tax forms when filing their state and federal taxes. If a taxpayer fails to comply with the IRS’s demands, he or she could face hefty fines and penalties or even criminal prosecution. If you are looking for tax resolution services in CA, You can also visit ACE Plus Tax Resolution.
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If you get audited by the IRS, don't panic. The IRS audited less than 1% of individual tax returns in 2018.
There are a few things you can do to prepare for an audit:
1. Keep good records: Be sure to keep receipts, canceled checks, and other documentation that support the income and expenses reported on your tax return. The IRS may ask to see these during an audit.
2. Respond promptly: If the IRS sends you a notice or letter about an audit, respond as soon as possible. You can call the number on the notice or letter to set up an appointment with the auditor.
3. Be honest: During an audit, be honest and cooperative with the auditor. Don't try to hide anything or make up excuses for why something isn't reported on your tax return. This will only make the situation worse.
4. Bring a representative: If you're not comfortable meeting with the auditor alone, you can bring a representative with you such as a lawyer, accountant, or enrolled agent.
5. Know your rights: You have certain rights during an audit including the right to professional and courteous treatment by IRS employees and the right to appeal if you don't agree with the auditor's findings.