IRS Audit
This is one of the most dreaded situations… you open your mailbox, pull out the envelope that bears IRS name and return address, and you break into the cold sweat. What is inside? Do you really want to open it? Your heart is racing and you start mentally painting the gloomy scenarios. Does it sound familiar? Has it happened to you, your relatives, friends or coworkers?
If you are reading these lines now, you have already made the right move – found Davidov & Associates CPA, a leading Alexandria VA CPA firm that specializes in defending clients in IRS audits and other proceedings. What do you do if you were selected for an audit?
You can find a lot of information online on how to survive an IRS audit, complete with recommendations and strategies. First and foremost, never attempt to handle audit on your own. In our experience, this lessens your chances for a successful outcome. Always hire a professional to handle it for you from start to finish. Second, find the records for the year being audited, and assess whether these records are adequate. Often, our clients report that while they initially thought that they had all records supporting deductions taken on the return, they have misplaced or lost the records during the move or in the act of God. Or, they have misjudged the adequacy of their records and never bothered to check on them. In any case, we have ways to either recreate the records, or order duplicates, or use alternative records to submit to IRS. Third, be very transparent with your CPA. If you believe you may have exaggerated a deduction, or made it up where there was none, you have to let us know that you need to speak to the tax attorney. We will then bring our partner tax attorney to the meeting, and this way you can have an attorney-client privilege to discuss very sensitive matters.
Another important recommendation is to never speak to an IRS agent directly, even when it may seem like an innocuous act. Always go through your CPA as an intermediary. This way you will be protected against inadvertent admissions that may backfire and be used against you.
The bottom line is – if you are audited, contact us at once. Do not delay as this will not help. We know how to handle the audit and can put our real-life experience to work for you.