The IRS is known to have legendary powers to collect taxes from U.S. citizens. But how did it receive such a reputation? Is it because tax evasion charges was the very thing that brought down organized crime in the 1940’s? Is it because tax problems have plagued countless famous recording artists?
Whatever the event that triggered the IRS’ place in historical lore, you can bet that many people are frightened when an IRS agent comes to their door, or their place of business. Because of this, it is important to know what to expect so that you are not caught off guard if the tax man selects you for an audit.
With that, we offer some helpful tips so that you can go through the process without too much turmoil.
Stay calm – As we have alluded to previously, it is easy to be intimidated by the mere presence of the IRS because of its legendary status. But remember, the IRS has to play by the same rules everyone else does. So if you are summoned or commanded to appear, stay calm and follow the order.
Organize the information you have – This may be easier said than done, especially if your bookkeeping skills are lacking or you have an unscrupulous accountant. Either way, the IRS is trying to see if you have the documentation to support your declarations. If you don’t have them, it is not the end of the world; it means that there may be more inquiries.