What does it mean when your taxes get audited

What does it mean to be audited for taxes? Audit notification and preparation: The IRS notifies you (or your authorized tax pro) about the audit, almost always by mail. Usually, the audit will be for a return that you filed within the past two years.

It means the IRS is going to call you in for a meeting because they have questions about what you put on your tax return. Take all your receipts and substantiating documents for all the deductions you listed.

If you cannot prove you spent. The agents are just that call agents, they arent processors. The IRS does random audits in regards to earned income credit, extra money you get for having a child(ren) when income is below a certain level. If this is the case you will be asked to provide all kinds of records showing proof that the. Not all audits are created equal The word audit simply means someone at the IRS is going to conduct an examination of your tax return.

This could happen because something in your return raised a. You may also be audited if your tax return reflects transactions with another taxpayer who is being audited.

Automatic red flags such as above average withholding for your income level may also trigger an audit. A certain number of audits are the result of plain bad luck – returns chosen at random. The IRS tax notice will give you contact information and instructions for what to do next. The IRS can choose to conduct your audit by mail or in person. See all full list on nerdwallet.

In-office tax audits are necessary when the IRS needs a more detailed explanation than what a document or receipt can provide. You also have the right to bring along an accountant or attorney for representation,. Audits that start soon after filing usually focus on tax credits , such as the earned income tax credit and the child tax credit.

The IRS often wants to verify filing status, dependents, and other return items before sending your refund. An audit is an assessment done by the IRS to determine whether the financial information you have provided is accurate and in keeping with tax laws, and if the tax amount reported is correct. Audits can be conducted through mail or via in-person interviews. Who Is at Risk of an Audit?

The most common type of individual tax return audit is a mail audit, also called a correspondence audit. The IRS will send you a notice asking you to respond with supporting evidence and documentation by mail to prove your tax return position. Contrary to popular belief, the IRS is not employed with millions of accountants checking each return that comes through their doors.

In fact, much of the processing is computerized now. The general concept of an eggshell audit is a taxpayer is selected for an audit when he or she knows that there are major improprieties or tax crimes in his or her files. The taxpayer thus faces a situation where he or she does not wish to unnecessarily disclose or tip the agent off regarding underlying fraud. Finding More About An IRS Audit An IRS audit is a process in which the IRS reviews your income tax returns and supporting documentation to make sure everything is correct. A tax audit is an accounting procedure where the IRS examines your individual or business financial records to ensure you filed your tax return accurately.

When you file your taxes with TurboTax, you automatically receive access to our Audit Support Center for help understanding your IRS notice, what to expect and how to prepare for an audit, and finding year-round to your audit questions. TurboTax says that the delivery is between Feb and March and the IRS says its still being processe and that A refund date will be provided when available.