An IRS audit is when the Internal Revenue Service investigates whether you’ve correctly reported your income on your taxes. It’s important that you understand how audits work so you can prepare yourself for the process.
When you’re facing an IRS audit, you need to know what to expect. Read this article to learn about the process and what you should do next!
In an earlier post, we discussed what an audit letter might look like. If you do receive an IRS letter stating that you’re being audited, you’ll then have to respond with any documents or other evidence you think will help prove you didn’t commit tax fraud.
According to the IRS documents, “selecting a return for examination does not always suggest that the taxpayer has either made an error or been dishonest. In fact, some examinations result in a refund to the taxpayer or acceptance of the return without change.”
Needless to say, this type of letter can be a stress-inducing moment.
The IRS reports that the overwhelming majority of taxpayers files returns and make payments timely and accurately. “Taxpayers have a right to expect fair and efficient tax administration from the IRS, including verification that taxes are correctly reported and paid with enforcement actions against those who fail to comply voluntarily.”
Some of the many reasons a taxpayer might receive an audit include:
We have discussed some of these right on this website. The IRS trains its employees to explain and protect taxpayers’ rights throughout their contacts with taxpayers. Taxpayers have the following rights:
Don’t Reply to an IRS Audit letter until you call us at 404-937-1414 about your situation or download our 12 Rules for Dealing with the IRS.
Don’t communicate with the IRS regarding an audit or tax debt until you read ‘Cohen’s 12 Rules for Dealing with the IRS’. Submit your email below to receive a PDF copy of this 1-page checklist.
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