Don't Fear the Auditor

In these cases, and in the majority of audit inquiries, the problem can be solved simply by providing requested documentation through the mail. Otherwise, you may be called to an IRS agency to meet with an examiner.

Upon receiving an audit, says Cindy Hockenberry, tax information analyst at the National Association of Tax Professionals, most taxpayers go directly their tax preparers. However, an audited individual can also use an enrolled agent, CPA or attorney. Unlike a tax preparer, who doesn't fall into one of those three categories, they don't need to have prepared the return to assist the taxpayer. The taxpayer can "just sign a power of attorney and can send them on their way alone," Hockenberry says. "You don't even have to go if you don't want to."

If the case remains unsettled, the next stop is the United States Tax Court, an independent entity from the IRS.

Next in the tax series: Don't Miss Out on Your Phone Credit