Do you get your Tax Refund if you get Audited?

September 23, 2022 by Kate Ferreira, CTEC
Tax Refund and Stack of Money Drawing in a Notebook

With the promise of summer and its hot weather, kids out of school, and upcoming vacation plans burning a hole in your pocket, you excitedly file your tax returns as soon as filing season begins in January. You are expecting a pretty sizable tax refund and are having a hard time deciding between a vacation with the family or finally installing the pool of your dreams. Once you hit “Submit” to file your tax return, you let you mind wander to all the wonderful places the money can go once it is yours.

However, the longer you wait for it to be deposited into your account, the more anxious you get. You remember reading that that the IRS typically issues your refund within twenty-one days from the date they receive your tax return if you filed electronically – or six weeks if you paper filed. You follow all the proper follow-up procedures and still, nothing.

Finally, after what feels like an eternity, you receive a check from the IRS in the mail. But, like out of a horror movie, what you thought was your ticket to the splash zone (you decided to go with the pool), is actually a notice from the IRS. You read the letter over and over and do not understand. Does this mean you are not going to get your tax refund? Does this mean…no pool?

Before you panic, it is important to understand that just because you have received a letter from the IRS does not mean that it is an audit. The IRS sends out many different types of notices and for many different reasons – such as math errors, a social security number entered incorrectly, etc. (You can find more information about why the IRS audit tax returns by clicking here to view the blog, “Why Does the IRS Audit Tax Returns?”)

However, now that you have received a notice from the IRS, you want to know if you are still going to get your tax refund. The answer is – maybe. Each tax situation is as unique and complicated as the taxpayer filing the tax return, so there is not a one-size-fits-all answer.

If a mistake was made when you were filing your tax return and the refund amount that you were expecting was impacted by the error, then there is a possibility your refund may be reduced or removed completely. In unfortunate circumstances, you might end up owing the IRS – depending on the error made when preparing your returns.

The best thing to do when receiving a letter from the IRS is to have a tax professional review what is being questioned. This is where having audit defense with TaxAudit is beneficial. Our team of tax professionals can evaluate your tax return and the letter from the IRS or state tax agency to ensure that, if you are rightfully owed a refund, you receive it.

If you are interested in purchasing audit defense and having the peace of mind that comes with a team of dedicated tax professionals on your side, click here to get started!

Tags: audit, tax refund

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Kate Ferreira
Communications Associate

 

Kate Ferreira is a Communications Associate with TaxAudit. A California Tax Education Council (CTEC) registered tax professional, Kate has been with the organization since 2015. Kate enjoys the challenge of writing about complex issues – including taxes. Outside of work she enjoys traveling, listening to vinyl, and going on adventures with her dog, Indiana Bones.


 

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