Preparing for an efficient audit

On Behalf of | Sep 8, 2017 | Estate Taxes |

When creating a retirement plan or a living trust, you must ensure that you are ready to have your tax return examined at any time. It’s very important that you are prepared for this and you have the information that the auditors will require readily available.

This blog will provide a brief overview of some useful tips that will assist you if you are having your retirement plan or trust audited by the IRS.

Prepare all information and have it on hand

It’s very useful to keep all important information in one place. When you are audited, you can supply everything that is needed. This required information will include all documents and amendments to these documents, the summary description of the plan, service provider agreements, determination letters, and records placed in an organized matter.

Inform the appropriate stakeholders

There will be certain people that may need to give statements or supply information as part of the audit. You should make sure to inform these people in good time so that they are prepared to comply. These people will include your attorney or representative, your trustee, actuary and record keeper.

Explain the plan’s operation and internal administration process

You must be able to explain the inner workings of your plan and defend its practices as part of the audit process. This will include showing documentation to cover the event of financial hardship, and the procedures and internal controls. As well as this, you will need to identify any errors and provide proof of the corrections you have made.

Source: IRS, “Top Ten Tips to Prepare for an Efficient Audit,” accessed Sep. 08, 2017


E-mail Cushing & Dolan

Articles By Our Attorneys


Cushing & Dolan, P.C. | Attorneys At Law

FindLaw Network