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I was audited a few years ago - someone stole $4k of checks out of my mailbox, I reported it as a loss without supporting paperwork, and that triggered an audit.
It wasn't terrible, but I played it cooperative. My financial picture for that year happened to be really complex, which made it a bit tougher than it had to be. I ended up paying an extra thousand, but that was for another basically dumb mistake.
You want to avoid seeming like you are too uncooperative or hiding stuff. I played it more incompetent than anything.
The advice to get an accountant is good advice - but I did not go that route, I did it myself.
They caught the person who stole the checks - but I have never seen a dime of the ordered compensation.
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