3 Myths Surrounding IRS AuditsMark Taylor
No one likes to get audited, and it is often considered as one of the dreaded words. But is an audit so fearful?
In most cases such fears are unfounded for. When an audit takes place, the auditors are trying to make sure that you have correctly reported the information and have paid the right amount of tax. If you have maintained the records correctly, then there is hardly anything to worry about the tax problems help NJ. Here are some common myths that surround IRS audits:
1-IRS Is After Me
No one in IRS is after you. The body selects returns to audit independently. The entire process is computerized so there is no bias against anyone. They use software to flag the returns that are incomplete, and other programs select the returns for an audit.
· Mismatches-It is a key reason why you may get an audit notice. If the income information that is provided in return is not matching with the one that IRS has, then you are most likely to get a notice to explain the difference. If you get an incorrect form from the payer, then you should be asking to fix the form.
· IRS has its own set of triggers to audit certain kind of returns based on pre-defined criteria.
· Related returns- It is also possible that another tax payer’s audit has affected your return. It is common to see in partnerships. The primary idea behind this audit to make sure that there is correct reporting of information.
2-An IRS Agent Will Come To My Home
Most common type of audit is mail audit, and it is also known as a correspondence audit. IRS usually sends a notice and asks you to respond with supporting evidence and the needed documentation over the mail for justification. Rarely will you find an auditor asking you to come to the office for the verification of the return? These audits are known as office audits.
3-I Should Pay To Avoid Trouble
Most taxpayers think like this, but it is not true. What if your return was right? You will have to clear the backlogs when you have agreed to the changes suggested by the IRS during the audit. If you don’t abide by the deadline and don’t provide IRS with sufficient records, you may end up ceding to the demand.
If you don’t want IRS letter to become a tax bill, you are better off sending a timely response to IRS that is well supported by documents. In case, you need help; you should get in touch with a CPA for all tax problems help NJ.