Most people waltz through life without ever being picked for an IRS audit.
But those who are selected need not panic, says Richard Davis, assistant professor of accounting at Susquehanna University in Selinsgrove, Pa.
The trick to surviving an audit is being prepared mentally and physically. First, collect and organize all relevant documents for the tax years in question.
“One of the worst mistakes you can make is to show up for an audit carrying a shoebox filled with 20 years’ worth of receipts that aren’t organized,” said Davis, who worked for the Internal Revenue Service in Washington for 15 years. “The IRS agent won’t even look at them.”
Next comes the mental part: Many taxpayers may be nervous or defensive when they enter an audit. As much as possible, stay calm and objective.
Questions should be answered truthfully, and your records should support the information on your tax returns.
