A thick white envelope with a logo that looks like a yeti is scratching the top of a scale while a leaf floats through the scene arrives in your mailbox and frankly, you’re scared. That logo only means one thing: a letter from the IRS. And once you open the letter, you’re even more freaked out, because it’s an audit letter from the IRS that frankly, you don’t quite understand. Yikes So what do you do?

Here’s a quick checklist of how to survive your IRS audit letter:

First: Don’t Panic

Take a deep breath. Getting hysterical and angry is a rational response to upsetting news, but an audit doesn’t mean you’ve done anything wrong. It simply means the IRS wants to take a deeper look into your taxable income and assets.

Second: You’re Normal

Not being able to make sense of the letter is a-okay. In fact, unclear letters from the IRS are the status quo (there was even a study about this phenomenon). So don’t worry too much if the letter doesn’t make a lot of sense right off the bat.

Third: Don’t Ignore the Letter

Unfortunately, the IRS may not have a habit of communicating clearly, but they are good about following up on their audits. Yes, take a moment to clear your mind and do something fun (like bowling!) but then, it’s time to take action.

Fourth: Gather Documentation

If you understand which parts of your tax return are under audit, start gathering relevant information. Receipts and online banking statements really help here.

Pro Tip: Keep all tax return documentation for three years – you never know when they’re going to come in handy!

Fifth: Ask for Help

An IRS audit is not something to be taken lightly – and it’s not something you want to do alone. Let’s Meet on TaxConnections today and we can go over your options ASAP.

Original Post By: Barry Fowler