What do you mean by tax audit?

July 21, 2022 by Charla Suaste

We are all familiar with the words “tax audit,” – and we all know that we’d do almost anything to avoid going through one.

 

But what does it actually mean to go through a tax audit? And what steps can be taken to make the process easier on ourselves?

 

Let’s start with the first question!

For individuals, a tax audit is a formal examination of a taxpayer’s income tax return. The reason the IRS conducts an audit is to ensure that the information reported on a tax return, as well as the amount of tax paid, was correct.

The IRS will typically send a taxpayer a notification via mail, letting them know which areas of their tax return are being examined. Additionally, the IRS will explain what information needs to be provided to confirm the claims that were made. Their examination may include anything, from simple entries on Forms W-2 or 1099, the verification of credits or deductions, or they may dive into an entire area of your tax return and ask for documentation to verify every line item on a certain part of the return, such as Schedule A, Itemized Deductions, Schedule E, Supplemental Income and Loss, etc.

There is no guarantee how long or invasive this process may be, and – with the backlogs due to the recent pandemic – the IRS can be difficult to get a hold of via phone and can typically take months to respond to correspondence via mail. Overall, the audit process can be lengthy, confusing, and sometimes scary, depending on what the IRS is questioning or how much additional tax they are claiming you owe.

 

So, what can you do to get a little peace of mind during this whole process?


Call TaxAudit! It might seem simplistic – but our bread and butter is representing taxpayers in front of the IRS all day, every day.

If you ever receive any type of notice from the IRS or state taxing agency and have a membership with us, you can call us immediately to get your case started. We will assign your case to one of our world-class tax professionals, who will examine the notice and your tax return to determine the next steps. If the IRS requires a response, your tax professional will come up with a strategy for responding to the IRS, determine the appropriate documentation to provide to the IRS, follow up with the IRS as needed, and make sure you pay no more tax than you rightfully owe. In some cases, we have been able to get taxpayers’ refunds they did not even know were available to them!

Our tax professionals have been representing taxpayers in front of the IRS for over 30 years, and we are truly the best in the business. We help take the guesswork out of the audit process so that you know exactly what needs to be done next, what the expected timelines are, and what the resolution of your case should be based on the notice and your documentation. We are here to help you!

If you’d like more information or would like to purchase a membership with us, click here for all the details or call our amazing Customer Service team at 800.922.8348.

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Charla Suaste
Communications Content Developer

 

Charla Suaste joined TaxAudit back in 2007 and, over the past 14 years, she has worked in a variety of different roles throughout the organization, including as a Customer Service Representative, Case Coordinator, and Administrative Services Assistant. She now serves as the Communications Content Developer and is passionate about writing, editing, and making even the most complex concepts easy to understand. Outside of work, Charla enjoys traveling, listening to podcasts, and spending time in her garden.


 

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