What happens if you get audited on your taxes

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If you have a refund coming, you get your refund late. And if you are REALLY lazy and delay filing for years you lose it entirely. There is no late filing penalty if you have a refund coming, at least on your Federal return. The point of a good tax preparer is to have a bullet proof tax return. If You Get Audited by the IRS, What Happens ? In some cases, you may be required to attend an in-person audit at a local IRS office.

In-office tax audits are necessary when the IRS needs a more detailed explanation than what a document or receipt can provide. What happens when you get audited.

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. The IRS could randomly select you for an audit. Or, you could make errors on your IRS forms.

Sometimes you made a mistake and didn’t pay enough in taxes. What to Expect if Your Tax Return Gets Audited Many people are scared of getting audited but have no idea what that really entails. After a tax audit is complete, you’ll get a notification of the result within days stating your charges, if any. You then have days to either appeal or accept the result.

If you appeal, you will take your case to an IRS appeals agent who will then make a decision based on the facts of your case. See all full list on hrblock. Less than percent of individual tax forms are audited annually. However, there are certain red flags that may trigger an audit. Even if you can’t pay your new tax debt immediately, you won’t want to ignore this notice.

Depending on the deficiency or the amount of unpaid taxes , your tax return can be subject to additional tax interests, civil penalty, civil fraud penalty, or criminal penalty. The amount and the type of tax audit penalties will depend on the severity of the deficiency found in your tax return. Facing an Audit When You Merely Made a Tax Error If you merely made a tax error, you still face the potential for tax consequences.

While it is significantly less likely that you will face criminal tax proceeding, there is always the possibility that agents will misinterpret statements, transactions, and behavior.

You’ll have days to file a petition with the U. If you still don’t do anything, the IRS will end the audit and start collecting the taxes you owe. Conversely, you stand a higher chance of being audited if you manage to wipe out all or most of your income through the use of tax deductions. You are also more likely to get audited as your income goes up. The experts agree: If an audit is going to happen, it will occur in the latter half of the three-year time frame.

Audits generally always happen two years after you file,” Zinman said. You’ve got to understand all of the hundreds of millions of people who live in this country and (who) file returns,. Access IRS Tax Forms.

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