IRS Audit Defense – What Should You Prepare For?

If you are a tax payer in Fort Collins, Colorado, chances are that you might be approached by an IRS auditor at some point while under audit. This can be nerve wracking for anyone because most taxpayers fear this process will be nothing but a waste of time and money. In reality, an audit is a completely fair process if done properly and by a competent professional. You will be afforded all the same protections afforded to you during a full IRS audit.


IRS auditors usually come in two flavors, private tax collectors or government auditing agents. They can either show up on private business missions just to ascertain whether or not you really owe what you owe or they might randomly select to audit you from out of nowhere to determine what your actual income is and how much you’re really making. Both styles are used equally and both are effective. What really determines how successful an audit will turn out is the manner in which the taxpayer plays the game. Here are a few tips that might help.


One of the best ways to assure an effective Fort Collins IRS audit defense is to simply cooperate. The more the taxpayer cooperates, the better the outcome of the audit will be. In other words, don’t assume that the auditor is doing an honest and thorough job because he might be looking for reasons to find fault with you. If you voluntarily admit that you are not totally forthcoming with information, then that could work in your favor. At the very least, if the auditor is still able to find major problems with your tax return, then you may end up with a good deal or settlement with the IRS instead of a huge financial penalty. To help you with this situation, you may visit


Even though many tax payers will hire an attorney or tax resolution specialist to help prepare their IRS audit defense, it’s still a good idea to have a few backup strategies available just in case things don’t go according to plan. Backup strategies can come in many different forms, but the two main strategies remain very strong. First off, always remember that an audit defense is not about what the IRS is finding. It’s about defending against what they are saying is wrong and what they are saying is not true.


Second, if the IRS says something that you consider inaccurate, then it’s important that you take the time to accurately verify that your information is accurate. There are many different mistakes that people make on their tax returns that can easily be corrected. The most common of these is forgetting to remove a column, but this error alone can save the taxpayer hundreds of dollars in tax debt. If the taxpayer’s accountant makes a mistake on the front end or back end of the return, it’s important to call them on it. Many times, taxpayers won’t take the time to mention this obvious fact to their accountant and wind up inadvertently removing all the relevant information from their return.


The best way to prepare for an IRS audit involves proactive, not reactive. Being prepared to defend your tax return in the face of a federal audit is the best way to keep yourself sane during an stressful situation. While it may seem easy to sit back and let the IRS trample all over your hard work and finances, nothing could be further from the truth. The IRS wants its taxes; everyone wants their taxes reduced. Preparing for an audit means being ready to fight back when the IRS arrives to help with the preparation process.

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