Of the more than 145 million individual tax returns filed during 2021, less than 1% will be selected for an audit. Here are a few things to remember if you receive a notice from the IRS of an impending audit:
- IRS computers usually flag the tax returns for audits and the vast majority of them are routine.
- The audit will usually focus on a few areas of your tax return – not the entire return.
- Just because your return is being audited, it doesn’t mean something is wrong. You may receive a “no change” or an additional refund as a result.
Here’s what to do if you’re audited:
- Do not panic. Open all correspondence and respond in a timely fashion with any requested information.
- Keep proper records. You should always be prepared to support your tax return details.
- Ask for assistance. If you’re not a tax professional, contact one to help you through the process.
- Do not volunteer information. Only answer the questions that are under review. If you’re attending a meeting with an auditor, it’s best to not do so on your own.
- Do not make it personal. Be polite and don’t make comments about anything other than what the auditor is asking.
If you do feel that you are being treated unfairly, there are ways within the system to help you.
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