Yikes. If you don't have a savvy CPA or tax attorney representing you, at least spend a little bit for coaching.
My two cents.
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As Attorney Mallen mentioned, you should obtain competent counsel to assist you in this matter.
Andrew B Gordon is a CPA and attorney licensed to practice law in Illinois. The information provided here is for educational purposes only and is not intended as legal advice for a particular matter. This response does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult an attorney.
You are always better off having a tax attorney meet with the Revenue Agent. Is this audit of a business or personal tax return? Some personal matters are simpler and you may be able to handle the audit yourself. Nevertheless, you should contact a tax attorney and have the attorney review the matter before deciding whether to handle this by yourself.
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1. I cheat on my taxes
2. I hate paying taxes
3. The U.S. Constitution does not require me to pay taxes
4. I hate the IRS!
5. I’m a member of the communist party
6. Here is the set of books I used for my tax return – You can’t see the real set
7. I only report the amount of income that is sourced to me on form 1099
8. I play with my return until I’m paying the amount of taxes I feel I owe
9. Did you shower this morning?
10. I’m going to get even with you for this…
Response intended to be humurous... But seriously - don't go into an audit without representation!
The best stragegy is to determine what are the strengths and weaknesses of your tax return, know the issues before the audit, and know the law also. I would meet with a tax professional to plan your strategy before the audit especially if there is a probabilty of a large adjustment and you are unfamiliar with tax law. Answer only the question answered briefly. Establish your credibility.
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Good Luck starts with a strategy and a plan.
Robert J. Suhajda, MS,CPA
17721 Norwalk Blvd. #43
Artesia, CA 90701
Tax Relief Lawyer. Former financial auditor and controller. Admitted to US Tax Court, Income Tax, IRS representation, Fiduciary income tax returns, Estate and Gift tax returns, Homeowner Association Strategist.
First, you don't always need an attorney - depends on how much money is involved and the issues (if it's $2,000 max you're going to owe and no allegations of fraud - under reporting, income, etc. and you haven't committed any crimes, etc), then you are probably fine because the costs of having an attorney present will probably be more that what you owe.
Second - to answer your question...don't volunteer anything! Read up on the rules of what they can and can't ask. Do NOT show up early (be on time).
Third - if it is a lot of money at stake, then at least go over the issue with a tax professional first to get help (AVVO general questions on what to say is NOT a substitute).