Six tips for surviving an audit

Sacramento, CA— Fear of being in the 1 percent audited makes nearly 40 percent of Americans pay their taxes honestly, according to an IRS Oversight Board survey.*

Some IRS audits are random, while many are prompted by returns' contents. “As the number of audits continues to climb so does the need for taxpayers to have a trusted tax advisor who can knowledgably guide them through this complex and time-consuming process,” said Ruth Jones, Office Manager, H&R Block. “In many instances, we saw clients owe as little as half the amount the IRS or state taxing agency initially claimed.”

Taxpayers should keep in mind six important tips if they’re tapped to meet with the IRS:

1. Get professional help. Tell your tax professional you received a letter and arrange to meet to discuss your tax situation.

2. Research. Review relevant data for the audit. Locate receipts, checks and other pertinent records.

3. Organize. Only take copies of documents to the audit that the IRS requested, along with any supporting materials.

4. Representation. Taxpayers may represent themselves or engage an Enrolled Agent, CPA or attorney to act as their representative. Weigh this choice carefully.

5. Be succinct. Stick to the facts when answering the auditor’s questions. Don’t volunteer information that’s not asked.

6. Appeal. If the taxpayer disagrees with the auditor’s findings, the results of the audit may be appealed.

For more information about Audit Assistance and Representation programs at H&R Block, please call.

Roseville, North Highlands area, 916 331 8168
Natomas, West Sacramento area 916 419 8137
Folsom, Sacramento area 916 487 2723

To learn more about audits, read IRS publication 556 at IRS.gov.

* Taxpayer Attitude Survey from the IRS Oversight Board – 2009

About H&R Block

H&R Block Inc. (NYSE: HRB) is the world’s preeminent tax services provider, having prepared more than 500 million tax returns since 1955. In fiscal 2009, H&R Block had annual revenues of $4.1 billion and prepared more than 24 million tax returns worldwide, utilizing more than 100,000 highly trained tax professionals. The Company provides tax return preparation services in person, through H&R Block At Home™ online and desktop software products, and through other channels. The Company is also one of the leading providers of business services through RSM McGladrey. For more information, visit our Online Press Center.