If the IRS Examines Your Tax Return

Perhaps the most dreaded piece of mail you can receive is the one from the IRS. It may be a notice that the IRS is taking a closer look at your return. This can result from something you reported or failed to report on your return, or it can be the result of random action by the government. Either way, you can't duck the situation; respond to any inquiries in a timely and appropriate way.

If you must go through an audit (which is an examination by the IRS of your return), learn how to prepare for it and how to handle yourself during the process. The results of an audit need not be completely black or white; you may find you win on some issues, lose on others, or agree to settle the entire matter.

You can turn the tables on the IRS and sue the government for unauthorized collection action.