Those picked for tax audits need to know what to expect

On Behalf of | Nov 9, 2018 | Tax Audits

Aside from paying taxes, the one thing just about everyone dreads is being picked for an audit. Tax audits, under certain circumstances, can have significant consequences. However, many people who are picked for audits really do not have a lot to worry about. The biggest cause of worry for most Connecticut residents really comes from not knowing how audits work.

Many people receive calls from automated machines saying that the Internal Revenue Service is investigating them. These calls are a scam and should be ignored. The IRS does not contact taxpayers that way. Those who are being audited will receive a letter in the mail. That letter will contain information about the tax year being questioned, what information is needed and the name and contact information of the agent handling one’s case.

Tax audits are either completed in person or by mail. They are usually only handled in person if there is a significant issue. Most are actually taken care of by mail. If one’s case requires an in-person interview, the IRS will send information about when and where the interview will take place.

There are three potential outcomes for an audit. The first is that nothing will change and the case will be closed. The second is that the IRS will request changes and one will have to pay additional tax and penalties. Finally, the third is that the IRS will request changes and the taxpayer will dispute the IRS findings.

Connecticut residents who require in-person interviews or who wish to dispute IRS findings may wish to seek assistance from a tax attorney. One’s legal counsel may be present at the meeting to help address any issues that arise. If a dispute needs to be filed, the attorney will know exactly how to get it done. Tax audits can be stressful, but with the assistance of legal counsel, one can get through it as quickly as possible.