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.
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.
Filing taxes can be a pain. No one wants to go through this process every year, and no one wants to pay more than they think they should have to. There are certain things some Connecticut residents may do when completing their taxes to help lower their tax liability. Unfortunately, some of those things may increase one's odds of being audited. What does the Internal Revenue Service look for when deciding who to audit?
Have you ever received one or more phone calls supposedly from the Internal Revenue Service? Most of these calls have to do with being past due on tax payments rather than tax audits, but they are scary nonetheless. If you do receive phone calls from someone claiming to work for the IRS or an automated message saying you have a tax problem, you're best just hanging up, as the IRS does not make it a habit of contacting Connecticut taxpayers that way.
No one wants to get picked for a tax audit, but it happens. The Internal Revenue Service not only looks for red flags on tax forms that would warrant tax audits, but it also randomly selects Connecticut residents to put through the wringer every year, just because they can. When an audit is complete, some people may feel that they have to live with the results, but the truth is, it may be possible to fight the results by filing an appeal.
When one leaves the workforce to retire, one would think that taxes would get easier. Unfortunately, they do not. There are a number of reasons why retirees in Connecticut may face 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.
The hope every Connecticut resident has when filing taxes is that they will not hear anything but good news from the Internal Revenue Service. However, months or even years down the line, there are an unfortunate few who receive letters stating they have been selected for tax audits. Audit is a word that can strike fear into anyone's heart. Not to worry, though; when it happens, taxpayers are protected by the Taxpayer Bill of Rights.
Connecticut residents who receive word that they are being audited by the Internal Revenue Service may have a lot of questions and concerns. This is completely understandable, as it can be a frightening thing if one has never been through it before. This week's column will address some common questions people may have about tax audits.
Tax day has once again come and gone. Many Connecticut residents were able to get their returns and -- if applicable -- payments submitted on time. Then there are those who may have needed to file extensions so that they have more time to figure things out. No matter what side of the fence one finds him or herself, those who did or do any of the following things may face tax audits in the future.