With the right preparation, it’s possible to take on an auditor and win.
Being selected for an audit can be a disappointing and stressful time. However, there are a few things you can do to take on the auditor and win.
Certain tactics such as: reviewing your rights during the process, gathering the necessary documents, challenging the report, being as brief as possible during the meeting, delaying (if possible), appealing the final ruling, and turning to professionals for help can get the case closed.
The article below outlines these steps so you can feel comfortable taking on an auditor and winning your case.
Review Rights
The first thing that you should do once you’ve been requested for an audit is to review your rights during it. This is important so you know exactly what you need to provide to them.
Otherwise, you may feel pressured to submit additional documents, statements, or paperwork that you do not need to. For example, some auditors may request you to provide tax returns from years that are not part of the requested audit or financial documents that belong to a spouse. These documents are not a requirement to give to them and therefore can help to close the case quicker (and in your benefit).
Challenge the Report
Another tactic that can be used to help you take on an auditor is to challenge the report’s findings. This can be done by reviewing the claims carefully to see if the calculations are correct. Oftentimes, auditors make mistakes with their calculations, interpretations of the law, and deductions which is why it’s best to review.
Finally, its best to have a professional (such as an accountant or financial advisor) look over the documents to ensure there are no errors or miscalculations in the claims.
Be as Brief as Possible
If you have been called into a meeting with the auditor it is also advised to make the appointment as brief as possible. Meaning, you should avoid offering up any additional information that may be used against you and only respond to the questions as needed.
Delay if Necessary
It’s also recommended that you try to delay the process as much as possible. This is necessary because it can give your tax attorney more time to prepare a case against the claims. Otherwise, failing to delay the process can result in a rushed judgment that’s not in your favor.
This can be done by requesting more time to retrieve the proper paperwork and only submitting the documents that you have to.
Appeal if You Don’t Agree
It’s also important to understand that you can appeal the final ruling if you don’t agree with it. This process can be done by simply calling the auditor to argue your point against it. If the auditor refuses to reexamine the case against you then you are able to meet with their manager, appeal directly with the IRS or go to tax court to fight the claims against you.
Use Professional Help
The final tactic that can be used to help you take on an auditor and win is to get professional help. This can be done with the help of an accountant, tax attorney, or financial planner to reexamine your documents and the claims made against you.
These professionals will be better equipped to handle the process as they have prior experience with the system and to fight on your behalf.
Ultimately, having a claim made against you can be financially devastating. However, these claims can be fought against (and won) with the right preparation. If you’ve had audit claims brought against you and would like more information on how to win get in touch with a member of our team for help.
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