Fear of being audited by the IRS can make even the most stalwart taxpayer panic. But Lori A. Gabriele, president of the Mahoning Valley Chapter of The Ohio Society of CPAs, says an audit should be viewed as nothing more than an impartial verification that you have reported all your income and are entitled to the exemptions, deductions, and tax credits claimed. Carefully read the letter from the IRS to verify that the information is correct. Be sure you understand what you are being asked to do. Respond promptly but don't hesitate to ask for a postponement if you need more time to assemble your records.
Preparation is the key to getting through the audit as painlessly as possible.
Be sure to review each entry on your return, organize your records and identify potential problem areas. Think twice before attending your own audit. You can choose to handle the audit by yourself, have a representative, such as your CPA, go with you, or have him or her go in your place. Most experts recommend that you do not attend your audit. If, for example, the auditor decides to question an area on your tax return, a representative can say that he or she doesn't have the answer, thereby giving you more time to research the area and secure the necessary documentation.