How do I prepare for a tax audit? 6 Answers as of May 19, 2011

I have been notified that I will be audited for my small business. What do I need to have ready? Most of my files are out of state from my move, and I want to make sure I have what I need.

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David Hoines Law
David Hoines Law | David Hoines
You need a representative-a CPA or attorney or enrolled agent to handle the audit.
Answer Applies to: Florida
Replied: 5/19/2011
Steven J. Fromm
Steven J. Fromm | Steven J. Fromm & Associates, P.C.
This is really an open ended question. Generally, you need to have all your documentation in place and have documentation germane and specific to the issues being audited at the time of the audit. You need to get with your tax accountant and tax attorney to prepare and strategize for this audit and you need for one or both of them to represent you at the audit.
Answer Applies to: Pennsylvania
Replied: 5/4/2011
Meyer & Yee, LLP
Meyer & Yee, LLP | Kent W. Meyer
You should have whatever they specifically asked for not more.
Answer Applies to: California
Replied: 5/3/2011
The Schreiber Law Firm
The Schreiber Law Firm | Jeffrey D. Schreiber
You will need to produce the documents/substantiation for the income or expense items which are requested and listed in the audit notice. Therefore, it depends on what areas are being audited which are listed in the audit notice.
Answer Applies to: California
Replied: 5/3/2011
Givner & Kaye
Givner & Kaye | Bruce Givner
If your files are out-of-state, then contact the auditor and tell him or her that you need additional time to get the records in order. The auditor should send you a list of questions in advance of your appointment. Review your records and organize the materials so that you can provide prompt, organized, thoroughly documented responses. Better still, don't handle the audit yourself: hire a competent CPA.
Answer Applies to: California
Replied: 5/3/2011
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