What documents should I prepare for an audit?

When preparing for an audit, it is essential to gather a comprehensive set of documents to ensure that you can respond thoroughly to any inquiries from the auditing body. For individual audits, you should consider preparing your tax returns for the past few years, supporting documentation such as W-2 forms, 1099 forms, and any other income statements. This information will provide a clear overview of your financial situation during the audit period. In addition, you should collect receipts and invoices for business expenses if you are self-employed or if you claim deductions for various expenses. Furthermore, bank statements, credit card statements, and proof of payment for significant purchases are vital to substantiate claims made in your tax returns. You may also want to organize documentation related to property ownership, such as deeds and title documents, especially if you are claiming deductions for property taxes or mortgage interest. If you have business-related deductions, financial statements for your business, including profit and loss statements, balance sheets, and schedules for depreciation, can be very useful. Finally, any correspondence you have received from the tax authority related to the audit may also be important. To ensure you are fully prepared, it may be beneficial to check the relevant sections of the TaxAudit.com website for more specific guidance tailored to your unique situation.