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*HOW TO BE AUDIT-PROOF and *If you're in business, you have around a 1 in 100 chance of being audited by *the IRS. If you run a business from home, your chances go up about four *times. As long as you keep your books in good order, though, an audit is *nothing to be scared of. The IRS won't audit you just to harass you. They *just want justification of certain items on your tax return. There are two *important things to do if you get audited, though, that can protect you and *your business from undue problems. and *When the IRS notifies you that you will be audited, they will give you the *choice of having the audit meeting at the IRS office, or your office. ALWAYS *HAVE THE AUDIT TAKE PLACE AT THE IRS OFFICE! Many business people think that *they should have the audit in their own office, so they feel more *comfortable. This is the WRONG thing to do. If you let the IRS agent into *your office, you have given him or her the opportunity to view your whole *operation. They will definitely be looking for other things to question you *about, besides the original audit item. If you have the meeting at the IRS *office, it forces the agent to focus on the original item. and *The second thing you should do goes along with the first. When you go to *the IRS office, THE ONLY PAPERS YOU SHOULD TAKE WITH YOU ARE ONES DIRECTLY *CONNECTED TO THE POINT OF CONTENTION! If the IRS has a problem with a *certain deduction, say travel expenses, take the receipts that will back up *the deduction, AND NO MORE! If you take your complete set of business *records, the agent is sure to take some time "looking for backup information" *for your deduction. In reality, they will be looking for other, unrelated *items that don't "look right." If you have the meeting in your office, they *have every right to look through your files for the same things. and *In other words, the smart thing to do is only give the IRS access to *information regarding the items they are auditing you for. They will let *you know the reason for the audit beforehand. This gives you the knowledge *you need to protect yourself and your business from audit nightmares. and and

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