IRS TAX Audit | TaxConnections

08 Jun 2022

What To Do If You Receive Notification Your Tax Return Is Being Examined Or Audited

If the IRS selects your tax return for audit (also called examination), it doesn’t automatically mean something is wrong.

The IRS performs audits by mail or in person. The notice you receive will have specific information about why your return is being examined, what documents if any they need from you, and how you should proceed.

Once the IRS completes the examination, it may accept your return as filed or propose changes. These changes may affect the amount of tax you owe or the amount of your refund.

Got an IRS notice saying they are auditing your tax return?

If you are unable to understand the notice, you can use our Did you get a notice from the IRS? section on our Home page that allows you to enter the notice or letter number to find out more about it, what action you may need to take, and where in the IRS process it falls. Or you can go to our Taxpayer Roadmap directly to see where your tax return is within the IRS process, how the return got there, and what’s next. Once in the Roadmap, you can still look up a specific notice if it isn’t already listed to find out what to do next.

Type of audit/examination and what to do for each type

Written by National Taxpayer Advocate | Posted in IRS TAX Audit

28 Jan 2020

Tax Debt: 10 Reasons You Shouldn’t Ignore It

What We Are Going to Cover

– Ignoring your tax debt won’t make it go away. In fact, it will only get worse.

– The IRS is willing to work with taxpayers who have tax debts they cannot pay

– 10 Reasons you shouldn’t ignore your tax debt:

IRS notices
Automated Collections
Tax refund seizure
Interest will build up
You will be charged penalties
The IRS could file a federal tax lien
IRS can issue a levy
A revenue officer may show up
You may not be able to leave the country
IRS could send your case to a debt-collecting agency

According to Richard Millhouse Nixon, “Make sure you pay your taxes; otherwise you can get in a lot of trouble.” Although he didn’t say it very poetically, President Nixon was definitely on to something.

Written by Venar Ayar | Posted in IRS TAX Audit • Tax Debt

11 Jun 2019

Is The IRS Pursuing A Criminal Charge Against You?

The percentage of criminal charges filed against taxpayers in the United States in 2019 is generally lower than it has been in the previous years. The chances of undergoing a criminal investigation by the IRS are therefore minimal. However, you might still find yourself part of that small percentage with no idea how to address their tax issues and avoid a prison sentence. Tax issues are very complex and mistakes are bound to happen.

How Does The IRS Recognize Tax Fraud?

The IRS has become more understanding and lenient when it comes to errors in calculations and other honest mistakes, for instance, miscalculating the amount of Earned Income Tax Credit. This is a painful mistake with its consequences but it is not likely to trigger a criminal investigation. Purposely concealing records such as a bank account from an auditor, on the other hand, is a sure way to call for probe into your situation. What scenarios then, may lead to a criminal investigation by the IRS?

Written by Venar Ayar | Posted in IRS TAX Audit