If you’ve received an audit letter from the IRS in regards to your tax return, it’s natural to start to panic. After all, audits are serious inquiries about your life and income, and can end up being costly.
When facing down an audit, it’s important to stay calm. While the situation can be unpleasant, it doesn’t automatically mean that the IRS is accusing you of doing something wrong. They’re simply asking for a more in-depth review of your finances.
There are two different types of audits:
- Face-to-face audits usually only occur in instances where a taxpayer has failed to report a substantial amount of income. Businesses and high-income self-employed persons are more susceptible to these types of audits.
- Correspondence audits are less in-depth and usually only result in a quick correspondence between the taxpayer and the IRS. This can happen to clarify a discrepancy or explain differences in the paperwork the IRS has and what you submit on your return.
The good thing is that most Americans won’t have to deal with audits. If you’re paying your taxes and faithfully reporting your income, there’s a very small chance of ever being subjected to an audit letter. However, randomly selected audits do happen on rare occasions.
Regardless of your case, it’s important to remember that a large percentage of audits don’t result in a tax liability or penalty.
When you’re experiencing an audit and need somewhere to turn for help, considering calling Taxation Solutions, Inc. in Virginia Beach today. We can help represent your case to the IRS and help you get your audit resolved with the best possible results.