The consequences of ignoring any sort of communication from the Internal Revenue Service (IRS) can be severe. The notices typically require more information on your end and will specifically explain the issue and exactly what you need to do – don’t let them scare you out of responding.

You must first determine whether or not the notice is legitimate. IRS scammers are on the rise and you’ll want to identify them sooner rather than later. That being said, you don’t have to respond to everything! Some letters are sent to simply notify you of changes on your account or updates to your file. If you notice something wrong, then you should respond with information that the IRS can use to adjust the discrepancies. Otherwise, there is no need to send a response.

Letters from the IRS will have a number in the upper right-hand corner for you to call if you have any questions or concerns. They provide a list of sample letter that are usually sent out and why they are sent – see here.

When there is a serious issue that the IRS is trying to inform you about, they will take more serious actions and you may end up owing money or spending time in jail if you are completely unresponsive. There may be a delay while you gather and sort the required information, but try to get everything out within 3-5 business days.

If you do respond and send additional information, be sure to note that correspondence in your records and store copies of everything. While you may be quick to reply, the IRS could take up to 30 days to get back to you … Be patient.

So what’s really going to happen if you keep shredding letters from the IRS instead of cooperating with their requests?

• They may end up calculating your tax return for you and determining how much you owe and what you’ll get in return.
• A tax revenue officer might pay you a visit to question your financial situation and understand if and when you’ll be able to pay them.
• You can face criminal charge for tax evasion, which can lead to arrest or jail time if left unresolved.
• Your wages could be garnished and money will be deducted from your paycheck before you get it just to pay off debt.
• The IRS also has the power to seize your assets in order to repay the tax bill.

You’re better safe than sorry, so follow these tips and avoid any trouble with the IRS. As always you can contact IRS Audit Group if you have any questions!

Telephone Number: (310) 498-7508
[email protected]

We get it, filing taxes is not something everyone loves to spend their time on. However, it is crucial to read and understand what is being asked of you, especially if you’re submitting your taxes electronically on your own time. It’s easy to fall into the trap of rushing just to get it done.

What if you work with a tax preparer? Well, the IRS can still audit you if you; fail to disclose all sources of income you may have, give the tax preparer insufficient information to complete your tax return to the fullest, or giving incomplete tax documents to the preparer. The IRS could care less if this was done accidentally or purposeful, which is why rushing will get you nowhere.

What are some reasons for a tax audit?

You leave out sources of income

This is the easiest way taxpayers can face a tax audit. This is very common in sole proprietors and independent contractors who also receive a 1099 form instead of a W-2. Many may not fully understand how much of a tax burden a 1099 form can cause. So, when a tax bill arrives that doesn’t look very appealing, it’s common to not disclose that information to keep 100% of taxpayers income tax-free. That isn’t a smart move in this scenario. The IRS has systems that are created to catch these errors when the numbers don’t quite add up.

You use whole or rounded numbers

Rounding your numbers may seem ideal and makes the calculations a whole lot easier and less time consuming, but it also raises a red flag in the IRS system. Why? Seriously, what are the odds of having an even number on your net earnings, or deductions? Slim to none. While it usually never gets this far, taxpayers can face criminal and civil charges providing inaccurate information. So it’s best to do the math right to avoid any consequences.

You file many deductions

Tax deductions are a good thing for many. It keeps you from paying taxes on certain expenses. However, deductions such as “home office deduction” raises a red flag due it being commonly misused by individuals. How will the IRS know if the deductions are legitimate? Well, they usually have a general idea due to your income level and other quantitative data they have gathered from similar filers. So, do not fall into the trap of thinking you can outsmart the IRS 100% of the time. It doesn’t happen that way for everyone.

How likely is that you’re going to get audited?

Lucky for taxpayers, while there’s still a chance of an audit, the chances are slim to none. 99% of the common persons’ taxes glides through the IRS system without being audited. As for the other 1%, of course, they’re being audited. If you’re a millionaire, your chances of being audited are 1 in 10. And if you’re a white house official, your chances are 100%. It may not be every year like Donald Trump’s situation for the past 12 years, but it will happen eventually to them.

As mentioned before, even though the chances of an audit are slim for the average person, anything is possible. $1 spent on a tax audit, brings in $4. Do the math. Do you think the IRS is going to let everyone continue to slide by without an audit? Not for long because it makes them more money. And let’s face it, all the IRS wants is your taxpayers’ dollars.

When filing your tax returns, make sure to take your time. The consequences outweigh the cost of telling the truth.

Telephone Number: (310) 498-7508
[email protected]