How to Survive being Audited

Cold sweats and heart palpitations tend to follow receipt of any letter from the IRS, more so when the said letter announces an audit of your tax return.

Your natural response might be to panic. Don’t. Jail time for tax evasion is a looong way off from that first letter announcing an audit. It’s likely that you haven’t done anything wrong and the IRS probably just wants clarification of some entry on the tax return. If you’ve been thorough and forthcoming with your return there’s nothing to worry about. But if you actually have been evading taxes, that’s a whole other story.

The Small Biz Survival Blog lists four rules of survival that will help you get through your audit with all your hair follicles still intact.