Getting that dreaded IRS audit notice in the mail is never a welcoming sight. After the reality sets in, it can be difficult to determine what to do next. You’ve received the notice, but what does this actually mean? Have I been suspected of committing a crime? Have I submitted my taxes improperly? What do I do now?
All of these are valid questions that run through the mind of most when they receive their audit notices. Lucky for you, we are professionals in providing IRS audit help, and are going to answer each of these questions in detail.
What Receiving An Audit Notice Means
Receiving that notice from the IRS simply means that they want to take a closer look at your latest submission of tax return documents. This in no way implies that you have committed a crime, or that you have filed your returns improperly.
According to the IRS, candidates for audits are chosen through a combination of a random selection and a computer screening process. So it is possible that you could have been chosen completely randomly!
Although this is true, the most likely case is that you made a simple clerical error. Whether it be rounding your numbers improperly, reporting using the wrong forms, or deducting too many expenses, there are a multitude of issues that can raise flags. In most cases, these are minor offenses.
What To Do Next
After you receive your audit notice, take a deep breath. We understand how stressful this can be, but that is why we are here to help! The most important thing you can do right now is gather up the documents listed below as these are going to be imperative to have throughout the process.
Typically the IRS will request some or all of the following documents:
- Home mortgage Information
- Previous tax returns
- Brokerage statements
- Pay stubs
- Bank Statements
If you are having trouble with this, you can always work alongside IRS tax professionals, like the IRS Audit Group.
During the actual audit, whether it be in-person or via mail, you’ll be asked to present certain documents which will be evaluated further to determine if a crime was committed or if a mistake was made.
If they conclude either of these things to be true, you will face the necessary punishment. If it is a simple clerical error, this will usually result in having to pay additional taxes that your initial tax return failed to report.
What To Do If You Can’t Pay
If you can’t pay your audit debt off immediately, there are a few different routes you can take. The easiest is to ask for an extension on the payment by calling the IRS. They will usually allow you to pay back your debt within 120 days.
If this is not enough time to do so effectively, you can opt-in for a payment plan like the ones offered by the IRS Audit Group. We are here to help you figure these complex situations out. Organizing all of the documents and going through the actual audit process is only half of the battle. Sometimes, the most difficult part can be coming up with the money you owe the IRS and paying it back on time.
No matter your specific case, our experienced IRS Tax Attorneys are here to help you along the way. If you have found yourself in this sticky situation, feel free to sign up for a free consultation today!