How to Deal When An IRS Audit Arrives During a Personal or Family Crisis

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The IRS has a way of initiating audits at the worst possible times — during family emergencies, for example. Unfortunately, procrastination is never an option when the IRS comes calling. It may seem impossible to work through both personal crises and audit nightmares, but you can and will make it through the storm if you follow these simple suggestions:

Be Prepared

As soon as you learn of your audit, begin preparing relevant documents. You don’t need to do everything at once, nor, in all likelihood, can you. Develop a list of the most important records based on the auditor’s feedback. Start slow; aim to retrieve at least one file every day. Breaking the process into manageable chunks will allow you to simultaneously deal with your current crisis — instead of going into full audit mode.

Work With a Professional

While it’s always prudent to seek representation during an audit, this becomes absolutely necessary when your attention is divided between IRS issues and outside crises. Seek a tax professional with considerable experience in defending audits, especially under less-than-ideal circumstances. In addition to increasing your likelihood of a favorable outcome, your tax expert can provide the guidance needed to ease your current burden of stress.

Seek Compromise

If you don’t agree with the auditor’s assessment, work together (and under the guidance of a tax professional) to determine whether you can reach a compromise. While you may come away owing something, the right compromise can reduce your financial burden while allowing you to shift your focus to urgent family matters.

Were you recently audited by the IRS? Don’t suffer in silence. Call 720-398-6088 today for insight into the auditing process — and to discover how the Highland Tax Group can help.