This is my very first tax audit ever. Since I do my taxes using Turbo Tax I also have very detailed records of exactly what got entered on the return. Turbo Tax is great when it comes to worksheets, and I highly recommend it for anyone who’s even a little adept with a computer. And unless the IRS changed the rules on the tax-free 529 college funds I believe that my return was correctly prepared. Tax preparation is needlessly complex and error-prone, but that’s not the IRS’ fault; they’re just doing their jobs. We need a better tax system.
So far, work on the audit has only taken five hours of my life. My next step is to mail back my response and await the inevitable phone call from some agent, requesting a date during which we can meet to go over my tax return in its entirety.
I can’t wait.