The Bankruptcy Law Offices of Eric J. Gravel

The IRS is usually willing to make deals, especially after the large budget cuts carried out by the Republican-controlled Congress.  The cuts have not only sapped morale inside the IRS, they have also made reaching an agreement with taxpayers more imperative.

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Two things about audits: 

1. It is important to be as prepared paper-wise as possible.  The IRS appreciates good document preparation and is much more likely to give well-organized taxpayers the benefit of the doubt about their deductions.

 

2. Taxpayers should never represent themselves during an audit.  This is probably even more important than item #1. IRS agents are well-trained and knowledgeable.  They audit thousands of returns and recognize landmines immediately.  They know exactly how to question taxpayers to obtain the answers they need.  The audit is like a 1000 to 1 match during which taxpayers unfailingly become emotional, the worst possible posture.  From that point on they become an easy source of additional revenues for the IRS.