Tip of the week: How to beat an IRS audit

The best way to prepare for a visit from the IRS.

Don’t freak out. It’s not that bad. More than a “million” other Americans will be going through the same thing this year. The IRS agent isn’t gunning for you: He’s likely juggling “20 or 30” other audits.

Prepare to negotiate. Be ready to strike a deal: Remember, the IRS wants the case closed just as much as you do. So don’t argue about every “nickel and dime”—you’ll only lose “credibility” that way.

Think like the taxman. Be as organized as possible, and auditors will see you as someone they can “rely on.” If you come across a deduction you previously overlooked, keep it close to your chest: It could become a potential “bargaining chip” if you turn out to owe elsewhere.

Source: Men’s Journal