How To Survive a Tax Audit

Keep your mouth shut. The biggest mistake people make at audits is providing more information than the auditor asks for, leading to even further scrutiny. Speak only when spoken to, and answer only what has been asked.

Bring only the documentation requested. Do not bring copies of previous returns that are not being audited, or you’ll open yourself up to questions about those, too.

Remain polite by reminding yourself that the auditor is just doing his or her job.

If you end up owing money—which the majority of taxpayers who are audited do—appeal the decision. Roughly half of people who do get their penalties reduced.

Never follow up if you don’t hear anything after the audit. Auditors have 28 months from the time you filed your return to render a decision. By bugging them, you may push them to complete an audit that would have died on the vine.

When preparing your returns in the future, avoid these red flags: charitable contributions that exceed 5% of your income, taking undeserved tax credits, business expenses that seem excessive compared to your earnings, and careless errors like adding a column wrong or forgetting to attach a 1099.