「report tax returns」How do I know if I have been audited by the IRS?
Time： 2023-03-09 16:03
Although the risk of being audited by tax is very low for most people, it is very important for every taxpayer to understand what the IRS audit is, why it should be audited, and how to know that you are being audited.
What is tax inspection?
The IRS Audit is an assessment by the IRS Internal Revenue Service on whether the financial information you provide is accurate, whether it complies with the tax law, and whether the tax declaration amount is accurate.
The results of this assessment will only be sent by mail or interview, and will not be communicated by phone, email or text message.
Who is at risk of being audited?
When the following situations occur, we must prepare relevant materials to deal with the IRS inspection:
The declaration information of the tax form is inconsistent with the registration of the IRS;
The income and deduction amount fluctuates too much, such as the home office or labor income tax credit, and the risk of tax inspection is greater.
The tax return submits duplicate information, such as you and another taxpayer declare the same dependant.
Income does not match life, excessive consumption and large amount of savings
How do I know that I am being audited?
If the IRS has listed you on the inspection list, you will receive a written notice. The notice will be sent to your last recorded address.
The written notice roughly includes the following four points:
Inform you that you are receiving tax inspection from the IRS
Details of the items under review on the declaration form
Review records to be provided
Deadline for submission of relevant documents and data
Whether it is mail inspection or on-site inspection, the IRS will provide a certain time for you to prepare relevant documents or reply.
It should be noted that different types of IRS tax inspection notices will be received for different tax declaration issues.
What do I need to do after the audit?
After the inspection, the IRS will send a 30-day letter detailing the adjustment suggestions required in the tax return.
If you agree with the survey results, you can sign the agreement form attached to the letter.
If you are dissatisfied with the investigation results, you can file a tax appeal or protest with the IRS within 30 days.
If you receive a notice of tax arrears (also known as a 90-day letter), you must pay the specified amount within 90 days or submit an application to the IRS.
You must take this letter seriously and reply to this question immediately.
Keeping accurate personal and business tax records, submitting correct tax returns and submitting them on time before the deadline can effectively reduce your risk of being audited.