Don’ts in an IRS audit

1. DON’T be late. Always remember first good impression will get your audit off on the right foot.

2. Don’t walk in without records. Be prepared with complete and organized records.

3. Don’t dump a paper bag in the auditor’s face. Do not have the auditor sort through paper bags of cluttered documents. A happy auditor may not necessarily favor you but an annoyed auditor in all certainty will not help you.

4. Don’t volunteer information. A typical agent is a low key, friendly agent. Always keep in mind that he/she is not on your side. Do not let yourself be deceived with a peaceful ambience and you begin chatting and provide unnecessary information.

5. Don’t be a chatterbox. Most tax payers are afraid to talk prior to the introductions to the auditor, and then become more relaxed and conversational when they find out that the auditor is not mean after all.

6. Don’t fight the auditor. Remember: he didn’t choose to audit you. He is simply doing his job to work on a given case file. He could make life more difficult for you.

7. Don’t ever bribe an auditor. Don’t ever try it as it will go directly to the Criminal Investigation Division (CID).

8. Don’t be overconfident especially if you have little know how about taxes and audits.  This is certainly not the time for an ego trip.

9. Don’t underestimate the skills of the auditor. The agent is a professional. Compared to his skills, you are an amateur.

10. Don’t represent yourself if there are difficult issues at hand. What you’re trying to save could cost you a lot more down the line. Now is not the time to save a penny for a buck.

IRS auditors have access to a Custom Comprehensive Report about you. It contains:

1. Birth date, professional license, driver’s license, and accidents.

2. Type of neighborhood you live in, properties owned with addresses.

3. Bankruptcies, judgments, liens, UCC filings.

4. Possible associates, number of people at work, transactions with relatives.

5. Concealed weapons permit, criminal records.

IRS has reverted from a gentler and kinder IRS to enforcement and compliance. They have reverted to the business of audits and collections rigorous enforcement programs.

In accordance with IRS Circular 230, this communication is not to be considered a “covered opinion” or other written tax advice and should not be relied upon for IRS audit, tax dispute, or any other purpose.

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Sy Al-os Accountancy Corporation provides accounting and tax services to individuals, corporations, LLCs and business entities. The Firm has a niche in defending taxpayers audited by the IRS and other governmental agencies. 

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