When the IRS has questions about your tax return that you file, an audit may result. This is the process in which the IRS digs deeper into your financial and tax situation to determine whether errors or omissions were made on your tax filings. While this process is intimidating for many taxpayers, knowing what to expect as you begin the proceedings can help you feel more confident.
9 Facts About IRS Audits
The following are nine helpful facts about IRS audits:
- The IRS is not likely to contact you via email to schedule an initial appointment for an audit. Instead, you can expect to be contacted by phone or mail.
- Typically, filing an amended tax return does not automatically increase your chances of being selected for an audit.
- If your tax return was selected for an audit, it is because the IRS compared it against the norms for other returns and ultimately decided that your return contained questionable items.
- Depending on the type of audit being conducted, your audit may occur either by mail or through correspondence, or it may occur in person at a local IRS office or at your place of business.
- Taxpayers are entitled to submit a request to transfer their audit to another location. For example, if the audit has been scheduled to take place at your place of business, this is usually because that is where the books and records are kept. However, the IRS can consider your request to change the time and place of the audit.
- If you move during the audit process, you can request that your audit be conducted at a different IRS office.
- When the auditor is done with the audit, the case will be reviewed by the auditor’s manager. If there are errors, you will be contacted accordingly.
- If you do not have all of the information on hand that you need when the audit is scheduled to begin, it may still be possible to begin the process. It is important to contact the auditor promptly to discuss your options.
- Audits generally can only go back to returns filed within the last three years, with some exceptions, such as where a substantial error is discovered.
Were you selected for an audit? We can help. Even if you already underwent the audit, if you are not happy with the results, you could consider an appeal. Learn more about the experiences of our past clients by checking out our client testimonials today.