Tips for avoiding and surviving a tax audit

>Taxes: Audits

The TDS Library



How to Prepare for an Audit

Bankrate

As anyone who's gone through an audit can attest, the three top tips for preparing for the experience are good records, good records and more good records. In other words, adequate record keeping year round, not just on April 15, is essential in case of an audit. More specifically, how should you, a taxpayer, prepare for an audit if it happens? These tips will point you in the right direction.

Red Flags that Tempt the Tax Auditor

Bankrate

The IRS says there are several ways a return can be selected for audit and the first is via the agency's computer-scoring system known as Discriminant Information Function, or DIF. The IRS evaluates tax returns based on IRS formulas, and DIF is based on deductions, credits and exemptions with norms for taxpayers in each of the income brackets.


Disagree with the IRS? Appeal its Decision

Bankrate

There are as many tax issues as there are taxpayers. Everyone's situation is unique. But taxpayers who find themselves disagreeing with the Internal Revenue Service share a common bond. Each has the right to appeal the agency's findings.

What the IRS Doesn't Want You to Know

Bankrate

If the IRS comes knocking, a little knowledge can keep you out of the taxpayer penalty box. A former IRS Agent explains how understanding the ins and outs of the IRS can help you win if you face an audit.


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