Tax audits are scary, especially if you’ve got unusual income or deductions. The assumption is that at the end of the process, you’re going to owe the government money.

You can help yourself in the audit process, however, by following 4 simple rules:

1. Shut up – You may think you’re helping by talking and volunteering information. You’re not. Even truthful answers can hurt you when talking to an auditor. The goal during an audit is to provide information but NOT raise additional issues or questions. There are right and wrong answers to the auditor’s questions, and the taxpayer often does not know the difference.

2. Hire a professional – A competent professional will know those right and wrong answers. She knows how to be consistent in answer and not contradict information already provided. She knows what documents will support the position you’re taking in the audit, and she can give the best explanations. Let her answer questions for you.

3. Prepare your documents – If you’ve done a good job of keeping records, this will be easy. Start pulling together documents right away, but don’t turn anything over until your attorney or CPA has gone through them. Do NOT volunteer extra data or documents to the auditor. Give him only what he needs to answer the questions that were asked.

4. Do not let the auditor on site – Whether you work from home or in an office, you do not want the auditor there. They could overhear something or see something they shouldn’t. All meetings with the auditor should take place at your attorney’s or accountant’s office. It is much easier to control the documents and the flow of information this way.

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