Are you worried about getting audited by the IRS?

On Behalf of | May 16, 2018 | Tax Law

Filing income taxes is painful for some people. This could be because they have a complex filing or because they have to pay in. Some people also dread having to do this because they are worried about getting audited. While this is a real concern, most people don’t have anything to worry about.

Typically, only a very small percentage of the individual tax returns filed will go through the audit process. More large corporations will face this possibility than small businesses. Still, it can be frightening to find out that you are being audited.

Notification of the audit

There are many scammers out there who prey on the fear of being audited. These individuals will contact you over the phone or via email and say that you have to pay a specific amount right away to satisfy the audit. However, the Internal Revenue Service will not notify you of an audit this way. Instead, the IRS will mail you a document with vital information regarding the audit.

Account selection for audits

Being audited doesn’t mean that you are being accused of tax fraud. Instead, many audits are based off of a computer flagging the return for an audit. This could be because you have something that is out of the norm for returns similar to yours. It might be due to random selection. You may also be selected for an audit if your return is connected to someone else who is being audited.

Methods for being audited

If your return is selected for an audit, a human reviews it to determine if there is a need for more information. If the review shows that nothing is amiss, the return is accepted. If the reviewer finds something questionable, it is sent to an examining group.

If you do have to participate in the audit at this point, you will be notified. IRS audits are handled in either in-person interviews or by mail. The type that you have will be noted on the audit notice you receive in the mail. If an in-person interview is necessary, you will either meet at your home, your office or an IRS office. Most audits are mail based.

You have specific rights that must be respected during the audit. If your audit is complex or you feel overwhelmed, you might opt to have legal representation to handle the matters. This may take some of the stress off of you during the process.