What happens when your taxes are audited

First, a piece of advice. TURN OFF YOUR CAPS LOCK KEY! By return you mean refund right?

When you receive a notice from a tax authority, you should immediately notify whoever prepared your tax return. If you prepared it yourself, you will.

Curious as to what happens during a tax audit? What Happens If You Get Audited ? We can ordinarily grant you a one-time automatic 30-day extension. We will contact you if we are unable to grant your extension request. See all full list on nerdwallet. We are also going over what you need during an IRS audit.

This is vital information to know and go over with your tax attorney to create the best plan-of-action.

Most business owners don’t want to think about what happens during an audit—they want to know how to avoid an IRS audit altogether. There are a few reasons why you might get audited by the IRS. In general, being found guilty in an audit means the IRS examiner believes you owe additional taxes , although you have the right to dispute the findings.

Access IRS Tax Forms. Complete, Edit or Print Tax Forms Instantly. In some cases, when you do not have receipts to show that you actually spent money on one of your deductions, it could result in tax penalties.

This penalty will have to be paid at the conclusion of the audit when you. Read this FindLaw article to discover the possible tax audit penalties and consequences. Your initial contact by mail from the IRS may ask for more information on items such as your income, itemized deductions and expenses. Perfectly OK: You bought your first home, and you’ll be living in it for at least three years.

Not OK: You bought your first home … and then promptly resold it within three years for a profit, or made another home your primary residence. You’ll need to pay back the credit in full when you pay your taxes that year. Your taxes are filed and now you’re sitting back waiting for that refund check to hit your account - or trying not to think about that big check. It may be smarter to hire a professional to sort out the details and work directly with the IRS.

But what happens if you don’t have all the information to prove items on your return?

Step number one: don’t panic. Not having all the receipts to prove your income does not mean you will automatically be punished. Most people don’t keep perfect records of their finances, so there are plenty of ways to resolve an audit even if you don’t meet IRS receipt requirements. I focus on taxes and litigation.

This article is more than years old. If the IRS owes you a refun you want to file your taxes. You can be totally honest on your tax return, and diligent about filing it and paying your taxes on time, and still fear being audited by the IRS.

The good news is, your fears probably far surpass your actual chances of being audited.