Opening the mail to find an IRS Audit notfication letter is never fun. IRS Audits can be handled effectively in various different manners. But now that you are looking at the IRS Audit notifcation in your hands here is what you need to know ...
An IRS audit is a review/examination of an organization's or individual's accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify that the amount of tax reported is accurate.
Although IRS Tax Audits can be intimidating, proper representation can result in a favorable outcome. An IRS audit is a review/examination of an organization's or individual's accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify that the amount of tax reported is accurate.
Last year the IRS audited approximately 1.2 million returns. These audits could have been very simple (single issue) examinations or the audits may have been extremely thorough and sifting - examining each and every part of the tax return filed by the taxpayer.
In any case, receive a notice by the IRS of their intent to audit your return is the very first step in the audit process.
Selecting a return for audit does not always suggest that an error has been made. It is possible that an audit can result in no additional tax due to a taxpayer. This is called a no change audit. In addition. an audit can even result in a tax refund. This result are discussed in the audit determination section of this article.
Tax Returns to be reviewed by the IRS for examination are selected using a variety of methods, including:
IRS Audit Selection Methods
Examples of transactions that could send up a red flag and trigger a potential IRS audit include:
In 2013 it was recommend that the IRS issue a Taxpayer Bill of rights so that all taxpayers would know what to expect when dealing with the IRS. There has always been many claims by taxpayers large and small that alleged that the agency sometimes would abuse their power when dealing with taxapyers. These rights include:
Rights during and IRS Tax Audit
In addition to your rights under an audit, you also have additional rights that the IRS want you to know (as seen in this video above).
An audit can be concluded in three ways:
IRS Tax Audit Guide by the Agency
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