What does it mean when your taxes are being audited

Get the facts about IRS audits. Learn more about the types of IRS audits and the process of being audited from the tax experts at HR Block. You just received a notice that your taxes are being audited : what does this mean ? A tax audit is an accounting procedure where the IRS examines your. Audits by Mail – What to Do ?

What makes your return a target for an IRS audit ? To do this, many or all of the products featured here are from our. However, people who are consciously cheating the system do have reason to be concerned. Why the IRS audits people. The IRS conducts tax audits to minimize the “ tax gap,” or the.

If your tax return is chosen for an audit , it does not mean you are in trouble. Just be sure to organize your documents and provide the IRS with everything it asks .

There are a number of possible explanations having nothing to do with an audit. For one thing, it could be that your tax return contained an . Conversely, you stand a higher chance of being audited if you manage to wipe out all or most of. Presumably, you drove to do personal errands at some point.

According to the IRS, the agency does its best to audit tax returns as. Day Letter, then it means that you have unpaid taxes. An IRS tax audit is something that most people would like to avoid. You may be making mistakes when filing taxes that could trigger the IRS to . The IRS audits taxpayers to determine the accuracy of tax -related financial records.

The audit process is known as an examination and does not imply that you have. That could mean a review of your bank records, for instance, . Does this mean you can always get away with cheating on your taxes ? Even though audit rates are historically low, the IRS still audited 89197 . But here are things to know if you do get audited. But your chances of being audited by the IRS are probably far less than your fears would suggest.

You can be totally honest on your tax return , and diligent about filing it and paying. You may also be audited if your tax return reflects transactions with another taxpayer who is being audited. Automatic red flags such as above . All a refund means is that the Internal Revenue Service (IRS) has reviewed your. Some inquiries from.

The IRS may be auditing fewer tax returns than it once did.