You file your taxes every year. You try to get all the details right, but there are so many small things to account for. You pay your taxes or receive your refund thinking that you’ve taken the correct steps — and then it happens. You receive a notice that you’re being audited by the IRS. What are you supposed to do now?
How did this audit happen?
First and foremost: Know that you haven’t necessarily made a mistake if you’re being audited. The IRS issues an audit simply because they’ve spotted something unusual about your taxes. In Las Vegas, this is especially important to remember, as many employees in the area work in the service industry and receive cash tips. The IRS only decides to audit you when they’re unsure — it doesn’t mean that all hope is lost.
Tax Audit FAQ
Still, receiving a notice that you’re being audited is a scary feeling. The best way to combat your anxiousness during this time is twofold: educate yourself on what happens next, and make sure you get the right attorney to represent you.
Q: Can the IRS take anything they want from me?
A: The IRS needs a court order to take your house, but they can take steps like levying your bank accounts, garnishing your wages, and levying the businesses that you do contract work for. Ultimately, however, the IRS has to follow a strict process during an audit. They are required to give you adequate time to respond and/or dispute a collection process, and you can even appeal the process that they follow.