You have filed your yearly tax return, but suddenly you have a notion you’re going to face an IRS tax audit. It’s not an uncommon concern and there are in fact thousands of people each and every year who are chosen for an audit. Now, people often panic when they hear this as they can believe they are going to go through a lengthy and very costly process. However, that isn’t always the case and it’s important for you to learn a little more about audits before you panic.
What as an IRS Audit?
First and foremost, the Internal Revenue Service in Australia has thousands of auditors who review tax returns and look closely at income tax paid. Auditors have the duty to verify the returns are essentially correct so that you aren’t underpaying what you owe or that you aren’t owed money either. In most cases, the auditors look closely at the deductions made on tax returns and if they believe something is amiss they can look at verifying it. However, just because you are selected, that does not mean you have done anything wrong or that the return isn’t correct either. It just means the auditor wants to verify a few things.
IRS Tax Audit Correspondence
This type of audit isn’t done by human eye, but rather by computer. A computer may select you out of millions if they suspect there is a problem with the return or something wrong in what is claimed. You will then be sent out an IRS tax audit correspondence. When this happens it is basically looking at verifying what you have said which means you have to send proof of your income tax financial records. Send the proof to the IRS with certified mail so you know the right people have received it. Once this happens, the case will be reviewed closely and hopefully that will be the end of the matter and there will be no more issues. You can send your tax return away each year but that doesn’t prevent you from being chosen.if you want more knowledge please click here.
If you are required to meet up with an IRS auditor then you will be sent a letter stating when and where. This is an important meeting so don’t miss it and ensure you take all the necessary documents with you. In fact, you may find taking a tax attorney or lawyer with you to be a great idea as they can ensure you’re being treated fairly. The auditor will review the case once again and offer an Examination Report if you need to make changes to your tax returns. There will also be reasons as to why this is the case. These interviews can be quite frightening which is why it’s advisable to take a lawyer with you.
An Audit May Happen
To be completely honest, each year there are probably hundreds of thousands of audits and they aren’t just aimed at big businesses or corporations. However, you never know what is around the corner and as such, until it happens, don’t panic. Yes, there is always going to be the fear of an audit however, just because you are selected it doesn’t mean your returns are wrong. Tax returns still should be filed on time and ensure accuracy is given at all times.read for more knowledge visit this url: http://www.columbia-homes-relo.com/what-steps-does-your-tax-return-preparer-take-to-reduce-your-audit-risk/