TaxAudit Reviews a Couple of Ways the IRS Can Review Your Tax Return
You open a letter from the Internal Revenue Service (IRS), and your heart begins to race. Apparently, the IRS has decided to examine your income taxes. Now, your appetite is dwindling, and you have a feeling that sleep won’t come easily tonight. The reality, though, is that you’re not the only taxpayer in this situation: The IRS examines over a million returns every year, according to TaxAudit, which has received numerous positive audit defense reviews during the past several years. The IRS also sends out millions of letters and notices that are not officially considered “audits” but may feel like audits nonetheless. Here is a look at a couple of ways the IRS may audit you.
For starters, the IRS may simply make a math correction if you’ve made a math error when filing your taxes. Most taxpayers today admittedly use professionals or software to prepare tax returns. However, making a math error is still possible. For instance, tax audit reviews show that some taxpayers duplicate withholding, particularly if they complete transactions involving stocks with their employers. With a math correction, the IRS can ensure that your records ultimately match the federal government’s records.
Second, the IRS may perform an office examination – the type of examination you most likely envision when you hear the words “tax audit.” In this situation, the IRS will send you a letter requesting that you schedule a meeting at an IRS office and bring your tax documents with you. If the government wants to audit you in person, you can expect the process to be relatively extensive. The benefit of going through a two-hour examination with the IRS, however, is that you can discuss your returns with the government face to face, which may make the communication process easier.
Being contacted by the IRS can no doubt be intimidating. However, developing an understanding of the audit process may help you to be more prepared to tackle the situation and confidently resolve it in the end.
Boris Dzhingarov graduated UNWE with a major in marketing. He is the founder of ESBO ltd a brand mentioning company. He is also passionate about meditation and healthy living. You can find articles on such topics at his spiritual blog Dzhingarov.com.