What to know when going through a tax audit by the IRS

On Behalf of | Jun 3, 2022 | Tax Audits

If you are contacted by the Internal Revenue Service and will be going through a tax audit, it’s important for you to know what to expect and to be aware of your rights. While the likelihood of being audited by the IRS is low, knowing that you are being audited means that you need to have the right representation and to take steps to protect yourself.

One of the interesting facts about IRS audits is that they are usually done through the mail. While many people think that a tax auditor is going to show up at their house, this simply isn’t the case. The majority of tax audits take place through the mail, allowing you to send correspondence back and forth to take care of the issue. Statistically, 72.6% of audits were performed by mail in 2020.

Sometimes tax audits are good things

Tax audits aren’t always bad. Sometimes, you could end up seeing that you deserve a higher tax refund, allowing you to get more money back from the government.

Of course, most people worry that they will owe more to the IRS, so it’s helpful to get some financial and legal support to determine the likelihood of that happening.

Making an error isn’t likely to result in legal action

If you made an error on your tax forms, it’s unlikely that the error will result in harsh penalties like criminal charges. Instead, you may have to pay what you owe as well as some fines or fees.

The tax code is extremely complex, which is why it’s common to see people make mistakes. The IRS knows this is the case, so it’s unlikely to assume fraud unless the errors on a tax form were intentional.

Don’t fear an audit: Take action

You should not have to fear an audit. You can take steps to protect yourself during the investigation and, if you owe money, negotiate with the IRS for a more positive outcome. It’s reasonable to be worried about an audit, but the right help can make it much easier on you and help you handle your case professionally.