Sy Accountancy Corporation

704 Mira Monte Place, Pasadena, California 91101

Tel (626) 744-0200, Fax (626) 744-0300, vsy@victorsycpa.com

 

TEN DON'TS IN AN IRS AUDIT

By Victor Sy, CPA, MBA

 

1.      Don't be late. It doesn't make that good of an impression.

 

2.      Don't walk in without records. Be cool, but don't be too cool.

 

3.      Don't dump a paper bag in the auditor's face. Don't try to have him wade through paper bags of messy documents. A happy auditor may not necessarily favor you but an angry auditor certainly would not help you.

 

4.      Don't volunteer information. Be informed that a typical agent is a low key, friendly agent. They get your guard down by playing a nice-guy role. Don't be deceived by it. Remember that he (including "she") is not on your side. He appears to be, but he is not. If you get fooled by this relaxed atmosphere and you start talking, then you are indeed a fool.

 

5.      Don't be a chatterbox. Most clients that I have brought with me are scared to talk before the introductions, and then become conversational when they find out that the auditor is not a mean guy after all.

 

6.      Don't fight the auditor. Don't ask him why he does not go after the Mob instead of small fish like you. Remember: he did not choose to audit you. Somebody else did.  He was      given a case file to work on and he is just doing his job. He could make life more difficult for you, you know.

 

7.      Don't ever bribe an auditor. Don't even think about it. If you think you have a problem now, wait until you bribe him. Your call will go directly to Criminal Investigation Division (CID).

 

8.      Don't be overconfident especially if you know something about taxes and audits.  This is definitely not the time for an ego trip.

 

9.      Don't underestimate the skills of the auditor. The agent is a professional. He does this kind of thing for a living. Compared to his skills, you're an amateur.

 

10.    Don't represent yourself if there are difficult issues at hand. What you are trying to save could cost you a lot more down the line. This is not the time to save a penny for a buck.