A tax audit is a stressful event. Receiving a letter from the IRS is enough to make most people break into a cold sweat. Such a response is not surprising considering that the IRS can put a lien on your property and garnish your wages. Furthermore, state agencies such as the California Franchise Tax Board and New York State Taxation and Finance can take similar action. Cities that have an income tax may also audit you.
Why Did I Get Audited
An audit can happen for several reasons. The IRS or Department of Revenue can audit someone if their tax return was done incorrectly. Tax returns that do not match the government agency’s records can lead to an audit. You may also be selected for review if you are a high income earner. The IRS or Department of Revenue may audit someone if he or she has unfiled tax returns. You may also be selected for an audit at random.
What Happens When You Get Audited
Did you know that the IRS often receives information about your financial activity even before you file your tax return? Banks, employers and other agencies routinely send information reports to the IRS. If your tax return does not match, or does not include that reported information the IRS may determine that an audit is necessary. An audit does not mean that the IRS is always right. The information they have me be incorrect or incomplete. This is why you need to contact Get Help Tax to make sure that the audit is handled properly and avoid unnecessary hassles.
Why Avoid an Audit
An audit is not only time consuming but it can also be costly. Some audits may be straightforward but others may be more involved requiring more in-depth assistance and correspondence. The best thing to do is to take steps to avoid an audit in the first place.
If you have already received a letter informing you of an audit don’t panic. Call Get Help Tax today. The worst thing you can do is to avoid the situation.