I am getting a lot of pressure from the IRS auditor; what do I do?
IRS or state examination is not designed to be fair or to leave any amount that can be taxed, untaxed. Agents at times can be aggressive, rude, and assume the worst.
You have three options here:
a) Make your strongest argument that the auditor’s conclusions are incorrect as your audit case wraps up. Be ready for the fact that few if any changes happen here. After this, go to item b.
b) Request a conference with the examiner’s manager. Here you make your best case argument that the auditor’s conclusions are wrong. Plan to have as much data as you can to support your position. This may include court cases or IRS/state rulings. After this, go to item c.
c) The Holy Grail…appeal the audit results. This is the sweet spot of the IRS where representatives are seasoned and inclined to take a more balanced approach to your case that represents a reasonable (not necessarily ideal) outcome. Have your case well prepared and researched.