Has the IRS come knocking on your door for an audit this year?  The number of audits have steadily increased over the last ten years, but they are still rather rare – only about 1% of all people who make $200,000 or less, 2% for $200,000 to $1 million, and about 6% for the super wealthy over $1 million.  If you happen to get an audit this year, it will most likely be for the year 2008 because audits go out about 18 months after the fact. 

If you are a lucky recipient this year, there is some great advice on CNNMoney.com to help make the process go as easily as possible for all concerned.   First off, don’t delay action if you receive a notice.  Respond within the time frame – usually 30 days – or you lose your right to argue in your own defense. 

It is advisable to have an experience tax professional and an attorney with you through the process – they can help you navigate the system and also speak for you in meetings so that nothing you say can be used against you. 

If you do attend the meetings, provide only the information requested – do not offer additional info that may widen the investigation.  And if you don’t like the result, ask kindly to speak to a supervisor – sometimes higher-ups are able to be more flexible.

Of course at all times remain courteous and professional and provide the IRS with the information requested within the requested time frame.  The more cooperative you are from the beginning, the more willing they will be to work with you.  If you have nothing to hide, you have nothing to fear.

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