She Strengthens

A Surprise from the IRS: My Unexpected Audit Experience

About a week before my birthday, I received an unexpected surprise in the mail – a letter from the IRS. My heart sank as I read the words “tax audit” staring back at me. It had to be a mistake. After all, I had only taken a small side job and obtained a business license to protect myself. But three years later, the government was knocking on my door, asking questions.

The Initial Panic

I quickly called the IRS to confirm if this was indeed real. The agent assured me it was, but there were no major red flags. My appointment was scheduled for three weeks later, and it would last around 3-4 hours. The letter said it could take up to 6-8 hours, so I was relieved to hear it would be shorter.

Gathering the Necessary Documents

The next day, I informed my manager that I needed to take a day off for the audit. I then started contacting companies to gather the required paperwork, including 14 months of bank statements. Luckily, I had kept detailed spreadsheets of my purchases, deposits, and expenses, which made the process easier. I also pulled out receipts for my business license, student loan paperwork, and medical expenses.

The Audit Meeting

Although I had prepared extensively, I still didn’t know what to expect during the actual meeting. The IRS website provided some guidance, but I turned to YouTube and online forums for more information. Unfortunately, I found nothing that explained the audit process in detail.

The Unexpected Twist

On the day of the audit, I arrived at the IRS office, only to find out that my agent was sick and couldn’t meet with me. A manager apologized for the inconvenience and offered to take my paperwork and reschedule the interview. I handed over my documents and waited for a call.

The Phone Interview

When the agent called, they apologized for the delay and offered to conduct the interview over the phone. This was a relief, as I had already prepared all the necessary documents. The questions they asked were mostly related to my business license and company purpose. After explaining everything, the IRS told me I didn’t qualify for a business license deduction, so they needed to correct it on my report.

The Outcome

In the end, I “failed” the audit, but not in a way that hurt me financially or legally. The correction was minor, and I didn’t face any penalties. Although the experience was frustrating, it taught me the importance of being meticulous with my taxes. Now, I go the extra mile to ensure everything is accurate and accounted for, just in case.