What does it mean when your taxes are being audited

What does audited by the IRS mean? 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. Review and audit do not mean the same thing. It is not a cause for concern. Well, the W-is the least of his issues, because that is only an estimate of what should be withheld from his paycheck.

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. When the IRS audits your return, the IRS is basically looking to see if you correctly reported your information and paid the right amount of tax. 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. 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. Please allow months from the date you filed your return to complete processing. This is a direct number to FTB Sacramento tax compliance and resolution.

There are a number of possible explanations for that holdup that have nothing to do with an audit whatsoever. An IRS audit is simply the IRS double-checking your numbers to make sure you don’t have any discrepancies in your return. Sometimes state tax authorities do audits, too. Does this mean you can always get away with cheating on your taxes ? The IRS uses sophisticated computer algorithms to decide on which returns to audit.

Most people think of the word “ audit ” as one of the worst five-letter words in the English language. But in many cases, the fear of an audit is actually worse than the audit itself. 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 has compiled a list of tips for those who have been audited and six of them start out with “Be prepared to…” The first step in being prepared is to have a thorough understanding of your tax return. You may be audited by the IRS by a letter in the mail to verify if you are eligible a child.

Our opinions are our own. An tax audit is simply the IRS or state tax authority double-checking your numbers to make sure you don’t have any discrepancies in your return. Nothing is inherently sinister about an IRS audit or state audit. An audit occurs when the Internal Revenue Service selects your income tax return for review.

During the audit, the IRS will analyze your return and supporting documentation to ensure that all entries are accurate. Filing taxes can be stressful. When the IRS opts to take a closer look at your tax return, that can only increase your anxiety level. Getting your return flagged for review doesn’t mean you’ll be audite but it can raise the odds that Uncle Sam will conclude that the numbers don’t add up. I received this message.

We have received your New Jersey state tax return and are currently processing your request for a refund.