Dance and Sing your way to your next audit
There are few things that strike more fear into the heart of the average taxpayer than the words “IRS audit.” The thought of facing down an IRS auditor and having to explain your entire financial life can be intimidating for anyone, and having to pay additional taxes, fines and penalties is also an unnerving thought. But there are many steps you can take to make the process of an IRS audit much easier to handle, and the first of these is to not panic. After all, the odds that you even get audited in the first place are extremely low. In fiscal year 2019, the IRS reported that it audited just 0.15% of all individual tax returns.
The most important thing to do when you receive notice of an IRS audit is to not panic. An IRS audit is not a judgment of how you run your finances. It’s simply an examination by the IRS to make sure you’ve correctly reported all of your income, complied with tax laws and paid the correct amount of tax you owe. In other words, if you’ve filed your tax return correctly, reported all of your income and claimed only legal deductions, you won’t have anything to worry about. Taxpayers can and do come away from IRS audits without owing any additional money whatsoever.