The agency has an information-packed web page that can help you prepare. Many times, resolving the situation will be as easy as providing documentation to back up the figures on your return. Often, these audits will take place entirely by mail, and even if you owe additional money, there may not be any penalties involved. You may be able to dispose of some of the questions and get a postponement for the rest.
The IRS has a three-year statute of limitations for tax returns, although in some cases, that can be extended to six, so hold onto your records for that long so you can prove the claims you made. Most audits happen two to three years after a return is filed. Keep in mind that state revenue departments can and do audit tax returns, as well, and in many cases, have a tougher reputation than the federal government does.
Loans are originated and funded through our lending arm, Accion Opportunity Fund Community Development. You may opt out of receiving certain communications as provided in our Privacy Policy. LegalZoom and NBA team up to support small business. That said, those changes could work out in your favor.
If you are among the unlucky few who wind up dealing with the IRS face to face, it's natural to be worried or intimidated. If you bring an accountant or attorney along, that professional will be there to guide you and, ideally, do much of the talking.
But if you're going it alone, here's what to do. First, whether you're meeting with an IRS agent at home or at a field office, get organized beforehand and come prepared with all of your records and documentation. That said, only present information relevant to the issues at hand or questions being asked. The last thing you want to do is open up an additional can of worms and subject yourself to further scrutiny.
Furthermore, don't be rude to the agent you're meeting with or argue excessively. Even if you have nothing to hide, you'll come off as overly defensive, which could arouse further suspicion. Finally, do not make the mistake of justifying an error by pointing out that you've always done things that way in the past. The IRS has three years to initiate an audit following the date of each filed return. Pointing out an erroneous deduction you've taken in the past isn't going to get you off the hook this year; if anything, it could prompt the IRS to examine your previously filed returns.
In an ideal world, we'd all file our taxes and be done with them. But if that doesn't happen, don't panic if you do get audited. The IRS also takes great pains to ensure that you report all of your income. Its computers match the information on employee Form W-2s the wage and tax statement your employer gives you and MISC forms issued to non-employees with the amount of income reported on tax returns using Social Security and other identifying numbers.
Discrepancies usually generate questions by the IRS. These computer checks are not counted in the IRS audit statistics. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site.
The attorney listings on this site are paid attorney advertising. In some states, the information on this website may be considered a lawyer referral service. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state.
Grow Your Legal Practice. Meet the Editors. What Are the Chances of Being Audited? Find out more about IRS audit rates and the chances of you being audited. Here's a breakdown by income of the percentage of individual returns audited by the IRS during fiscal year Adjusted Gross Income Audit Rate 0 2. For example: Returns with extremely large deductions in relation to income are more likely to be audited. Certain types of deductions have long been thought to be hot buttons for the IRS—especially auto, travel, and meal expenses.
Casualty losses and bad debt deductions may also increase your audit chances. The IRS will provide you with a written request for the specific documents we want to see. The IRS accepts some electronic records that are produced by tax software.
The IRS may request those in lieu of or in addition to other types of records. Contact your auditor to determine what we can accept. The law requires you to keep all records you used to prepare your tax return — for at least three years from the date the tax return was filed.
For any delivery service you may use, always request confirmation that the IRS has received it. For example, if you use the US Postal Service, you can request one of their additional services to ensure delivery confirmation. For audits conducted by mail - fax your written request to the number shown on the IRS letter you received. If you are unable to submit the request by fax, mail your request to the address shown on the IRS letter. We can ordinarily grant you a one-time automatic day extension.
We will contact you if we are unable to grant your extension request. You may continue to work with us to resolve your tax matter, but we cannot extend the time you have to petition the U.
0コメント