What Questions Do IRS Auditors Ask?
IRS audits can be stressful for taxpayers, but understanding the types of questions auditors typically ask can help you prepare. Here are some common inquiries that IRS auditors may pose:
- Can you provide documentation for your income?
Auditors will ask for proof of all income reported, including W-2s, 1099s, and any other relevant documents.
- What deductions are you claiming?
Be prepared to describe and substantiate each deduction, including receipts and relevant forms.
- Did you have any business expenses?
If you are self-employed or have side income, auditors will want details about your business-related expenses.
- How did you calculate your taxable income?
Explain the methodology used for calculating your taxable income, including any adjustments made.
- Are there any discrepancies in your forms?
Be ready to discuss any inconsistencies found between your tax returns and other documents filed with the IRS.
- Have you received any notices from the IRS?
Provide copies of any IRS correspondence related to your tax filings.
Being organized and having all necessary documents ready can significantly ease the auditing process. It’s also advisable to consult a tax professional for assistance during an audit.