How to Survive an IRS Tax Audit

Physician's Money Digest, November 2007, Volume 14, Issue 11

If you have received an Information Document Request (IDR) from the IRS, the instinct to panic may be strong. However, taking the appropriate steps to safeguard yourself may take some of the pain out of the process.

On receipt of an IDR be sure to secure representation from a tax professional such as an enrolled agent, certified public accountant, or tax attorney. This representative can be either the person who prepared your tax return or an independent advisor. Once you have chosen your advisor, set up an executed power of attorney so this person can fully represent your interests. Be sure to be completely honest with your representative and have them review all communications from the IRS. You may need to provide them additional documentation, so be prepared. Your advisor will respond to the auditor's requests and will, hopefully, resolve any issues that may develop during the audit process. After the audit is completed, the auditor will file a report. You and your advisor will have a chance to review and appeal any assessments made.