How To Survive A Tax Audit

Delaying an audit could save you money. IRS auditors are instructed to close audits within 28 months of the later of the date you filed your tax return and the due date.

The longer your file is open, the more likely the auditor will want to reach an agreement. Thereâ€-s even a chance it could be dropped if the auditor has more pressing cases.

On the downside, keep in mind that if you lose the audit, you'll have to pay interest on any amounts you owe. Also, if your life expectancy is short, your heirs won't have you around to defend yourself against the IRAS. You're  the person who knows best why your returns contain what they do.

Some methods you can use to delay an audit are:

• Respond to all inquiries before the deadline specified by the notice you receive, but don't respond right away.
• Ask for as much time as possible to prepare for the audit.
• If you aren't well, a day or two before the audit, ask to reschedule it, using your illness as the reason.
• Ask to have issues explained to you in writing.

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