Your Money: Surviving a tax audit

You met the tax filing deadline, but you may not be finished with Uncle Sam. You never know when you might get audited. Here's how to navigate the process.

Don't assume they're right. Most notices saying you owe money are simple data or reporting errors the tax authorities believe you made. But there's a real chance they're wrong, says Larry Elkin, a CPA with Palisades Hudson Financial Group in Scarsdale. Check the facts or ask your tax preparer to investigate.

Hire help. The audit process works best when it is limited to the issues the auditor raises. Let a CPA, attorney or enrolled agent represent you.

Get ready. Have your representative immediately contact the Internal Revenue Service to set an appointment. Review the requested documents with your representative. Know the answers to questions before the IRS agent asks, says David Gannaway, a principal with Citrin Cooperman in Manhattan. If you don't have receipts to support the deductions or expenses you claimed, get copies from the source.

Know your rights. Read irs.gov/pub/irs-pdf/p1.pdf.

Avoid mistakes. Never provide false or misleading documents to the agent. Give copies, not originals, says Linda McCarthy, managing director of Manhattan accounting service provider CBIZ MHM.

Be polite. Pay promptly. If audit adjustments are proposed, ask for an explanation of changes from the agent. Get information to rebut the agent's position if warranted. If it's clear the auditor is right, concede and pay.