AN IRS AUDIT

Maybe math isn’t your strong suit—or maybe you didn’t report all that cash from your second job. Here’s the 411 on what to do about those errant 1099s when the tax man (or woman) comes calling:

Don’t: Put your head in the sand. You typically have 30 days to respond to a tax notice before the IRS takes action.

Do: Organize the paperwork the auditor requests. Making the job easier could win you some points. Also, remember that it’s your legal responsibility to prove your deductions.

Don’t: Forget that you’re essentially testifying when you talk to an auditor. Answer questions with a yes or no, and don’t comment unless asked.

Do: Make sure your file is complete. Missing some records? That’s no excuse. Order duplicates.

Don’t: Cop an attitude. Auditors have a job to do, and having a chip on your shoulder won’t help your case.

Do: Know your rights. If you don’t agree with the outcome, you can appeal. It also might be wise to talk with a professional tax lawyer.