Are you considering filing for bankruptcy, but have recently been selected for a federal audit? You may be wondering if this is relevant to your case. It is. And, you will need to disclose this information to your attorney, whether the audit has been completed or is still pending. But, what if you are just finding out about the audit? Here are ways you can prepare for the audit:

Get Organized

Get a list of items that the IRS wants to see before you ever meet with the IRS. Be sure to keep all relevant documents together in one place. The most important documents to gather include anything that will support the deductions or exemptions you used when you filed your taxes. This evidence will be essential. Keep in mind that this will take time and effort on your part, so you should get started as soon as you are notified by the IRS.


The IRS publishes information about audit processes, the appeals process, your rights as a taxpayer, and other valuable information. You should note that these publications may not exactly reflect how the IRS will conduct your audit, so you should consider the next step.

Find Professional Help

Using a tax professional will ensure you have a professional helping you. This person knows how to use the law and IRS audit processes to your advantage. Consider this option if the audit involves a large amount of money. Or, if the IRS is auditing due to evidence of questionable activity. Do some research into finding an attorney! Find someone with experience with tax law and dealing with an IRS tax audits.

Don’t Make it Complicated

Provide only the information and documentation that are requested by the IRS. Do not offer any additional information. Providing extra information may lead to more questions or money being owed. Again, this is another reason why having a tax litigation attorney is helpful.

Need Extra Time?

If you need additional time to gather information, you are typically able to request extra time. Do not request more than 30 days as an extension.  It is not likely to be granted. Granting any will depend on your circumstances and reasons for needing more time.

So, Happens After a Federal Audit in California?

It is important for you to successfully file your tax return. Without the filing, it is not likely that you will receive a successful discharge in your case. In California, if any figures are changed in your filed return by the federal audit, it is your responsibility to report the changes to the Franchise Tax Board. Basically, you need to notify the state of any changes and/or amend your state tax return within six months.

Need More Information?

Remember, speak with your attorney about any concerns you might have regarding your audit or filing for bankruptcy. The IRS also has a list of common bankruptcy issues that can be tied to your taxes. Click here: Common Bankruptcy Issues. Speaking with your attorney about all of your debt will help you formulate the best plan to tackle your debt.

Don’t have a bankruptcy attorney? At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like to get to know you and we would like you to get to know us. We want you to be sure you are the right fit for us and that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case, so we can offer you representation to the fullest extent of the law. Call us today to set up a free consultation.