How to Prepare for an IRS Audit
When a taxpayer has received notice of an IRS tax audit, the taxpayer should recall the events and transactions of that tax year, any problems which occured during that year, as well as any unusual tax positions taken by the taxpayer on the tax return being audited. The taxpayer should begin assembling copies of the tax return and supporting financial statements and records. Also, the taxpayer should assemble an audit team consisting of the tax return preparer, a tax controversy attorney, and a team of key employees who can gather and explain the taxpayers financial and business records and practices. As you begin planning a legal strategy to an IRS examination, candor and clear communication between the client and tax attorney is critical. If you have taken any tax positions that the IRS is likely to challenge, it is imperative to discuss these with your tax attorney at your initial meeting to give your attorney adequate time to develop a strategy for responding to the IRS inquiries,
