WHILE my audit tips usually focus on you - the taxpayer, let’s look at how IRS agents interview taxpayers under audit. Let’s change roles and learn how IRS auditors work you over, I mean, work with you - from the agent’s perspective. IRS auditors are trained to:
Establish rapport with the taxpayer.
Maintain a friendly and professional demeanor.
Maintain control of the interview. Establish pace and direction. Continually assess whether the taxpayer is giving relevant information or merely rambling.
Look for pertinent leads. Follow up any answer that is not complete or to the point.
Concentrate more on the answer than on the next question.
Ask questions that require narrative answers. Avoid “yes” and “no” questions whenever possible.
Avoid leading questions.
Recognize that an IRS audit is often once-in-a-lifetime experience for the taxpayer who may be may be tense. Give some latitude. Don’t think that the taxpayer is nervous because he/she is “hiding” something.
Use an outline. Remember though that an outline should not keep you from spontaneous questioning. Provide enough leeway to cope with unexpected situations that may occur.
Develop leads that may arise.
There you are. Keep these 10 tips handy for your next audit…..
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Victor Santos Sy, CPA, MBA, provides professional services in accounting and tax controversy including IRS audit defense and offers in compromise. He also advises clients on choices of entity including corporations for small businesses and LLCs for rentals. Vic worked with SyCip, Gorres, Velayo (SGV - Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation at 704 Mira Monte Place, Pasadena, CA 91101. The firm celebrates its 34th anniversary in 2011. You may email tax questions to Vic at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . You are welcome to visit our website for about 300 tax tips at www.victorsycpa.com.
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