Income Tax Audit

Income tax audit: the tax man cometh

An income tax audit is the most feared event in anyone’s life. I would feel more at ease fighting a gang of juvenile delinquents. They would do less damage. Luckily most Americans will never have to go through an IRS income tax audit. This does not mean you should not be prepared for one.

The best way to make it through an income tax audit is to always be prepared. It is almost too late to become prepared once you get the notice that you are being audited. The best thing to do each and every year is to keep all your receipts and slips that you used to figure your income tax return in a safe place.

This is a country of laws and rules. The IRS has to follow them just like you and I do so know the facts. The IRS can only audit you going back 3 years. You are also allowed a refund from your taxes not submitted for three years without penalty and you are also eligible for the interest on the amount of the refund. If you owe back taxes you not only have pay the tax owed but also the penalty and interest.

The best way to make it through an IRS income tax audit is to first and foremost be honest when filling your taxes in the first place. Obscure deductions or radical changes in your income and what you claim will trigger an audit. Do not try to cheat the IRS out of any of their money. Yes they act as if it’s their money and most take it personally so be careful and do not try to cheat.

An IRS income tax audit is survivable, just be honest.

Note that while we believe the above information to be correct, we are not tax attorneys. You should consult a tax attorney or a licensed accountant for tax advice. Please be sure to read our disclaimer, available in the sidebar to the right.