Being the subject of any tax audit can be stressful, but the intensity magnifies when an audit involves the Internal Revenue Service. Here are a few tips to help you deal with an IRS audit as efficiently and affordably as possible.
Understand why you’re part of an IRS audit. The IRS uses a computer system to “flag” certain tax returns for audit. Taxpayers with taxable income of more than $200,000, those who are self-employed and file a tax return with significant claimed business expenses relative to reported income, or those who claim high charitable contributions relative to income may be “high-risk” for an IRS audit, according to experts at the Society of Grownups.
