How to Prepare for a Tax Audit

Other records. An auditor can also inspect records from your tax preparer or accountant, bank or other financial institution, suppliers, and customers.

In addition to inspecting your business, an auditor may inspect your personal finances. The IRS may compare your current lifestyle with the income presented on your tax return to determine if they are compatible. An auditor may also talk with others who are knowledgeable about you and your financial situation.