Posts tagged "Tax Audits"

Do these things on your taxes, and you may be audited

The Internal Revenue Service's audit department is busy, but it is not because most taxpayers' returns contain questionable information. Less than 1% of the population is audited every year, which is a far lower number than it used to be. IRS staffing and funding are simply lacking, leaving fewer agents to review and investigate suspicious tax returns. Knowing this may make some Connecticut residents feel they can take little care when preparing their tax filings, but they shouldn't.

Being audited? Don't panic

Being the subject of a tax audit can be an unnerving experience. Panic is the overall feeling people have when they find out they are being audited. However, Connecticut residents can help themselves by remaining calm and seeking assistance to handle the matter as swiftly as possible.

How long does the IRS have to start the audit process?

It is no secret that the Internal Revenue Service is extremely short-staffed and has been for some time. It can take agents years to review and identify tax returns that may need to be audited. Thankfully, though, there is a statute of limitations for starting the audit process, and knowing what the deadline is can help Connecticut residents determine how long they need to hand on to their tax records.

Tax audits: What you can expect

Every year, quite a few Connecticut residents find out the Internal Revenue Service is auditing them. Those who are facing tax audits will receive notification in the mail. Within that notification is a lot of information about what is needed to review one's case and how to contact the agent assigned to one's case, but it typically contains little information about the actual audit process. For this reason, it seems appropriate to share what one can expect when being audited.

Tax audits do not have to be faced alone

You do everything you can to make sure your tax filing is on the up and up. You take your time, make sure everything you submit is correct -- at least to the best of your knowledge. You may even hire someone to help you. Despite your best efforts, you received a letter from the Internal Revenue Service or the state, saying you are being audited. Before you start to panic, remember that tax audits are not something Connecticut residents have to face alone.

People who do this more likely to face tax audits

Most people in Connecticut will never be audited. In 2019, only .45% of all taxpayers, nationally, faced tax audits. The Internal Revenue Service simply lacks the resources to go over every single taxpayer's tax returns in detail. However, people who do this one thing are more likely to be audited, and that one thing is: make a lot of money.

Claiming part-year residency could get you audited

It's no secret that he tax rate in Connecticut is high. It makes sense that those who choose to live part of the year in another state would want to limit how much they have to pay in taxes here, so they claim part-year residency. The problem with that is doing so may get one audited.

Tax audits are not necessarily a bad thing

The word audit can strike fear into the hearts and minds of just about anyone. No one wants to get a letter from the Internal Revenue Service saying they are being audited. The simple truth of the matter is, tax audits are not necessarily a bad thing, and Connecticut residents who find their taxes being picked apart by the IRS may not have anything to worry about.

What to do if the IRS comes calling

A typical day can quickly take a negative turn just by looking into one's mailbox. The Internal Revenue Service, if it sees an issue with one's tax return, makes contact via mail. The letter received will give one vital information about the potential problem, or the amount allegedly owed, and who to contact about it. Some people may choose to just pay and be done with the whole thing, while other Connecticut residents may want to question the IRS. Thankfully, those who wish to do the latter do not have to do it alone.

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