What not to say in an audit includes any statements that suggest dishonesty, guessing, lack of records, or intentional evasion, and any volunteering of unrelated information that expands scope. You should never say I made up numbers, I guessed, I did not keep receipts, I do not have records, I pay everyone in cash to avoid taxes, I did not report all my cash income, or everyone cheats on taxes, as these admissions can trigger negligence penalties, fraud penalties, and expanded examination. Do not say I think it was about this amount or I am not sure, instead say I will need to verify with my records and provide accurate documentation. Do not blame your accountant by saying my CPA told me to do it, as you are responsible for your return. Do not volunteer information about other tax years, other deductions not under examination, or personal expenses, for example if asked about business mileage do not start discussing personal travel. Do not be argumentative, hostile, or lie, and do not provide altered or fake documents which is a criminal offense. Be polite, answer only what is asked, provide requested documents, and if uncertain, say you will provide documentation later, and consider professional representation.
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