Few things were as dreaded in school as a pop quiz. Today's blog post is the opposite of a pop quiz. We are going to give you both the questions and answers that could prove useful if you ever face the taxpayer test known as an IRS audit.
The first question that typically comes to mind when a person has been contacted by the IRS and told that they are being audited is "Why me?" The IRS says the audit selection process begins when a randomly selected return is compared to "norms." After a review by an auditor, the return is either accepted as is or, when "questionable items are noted," the return is passed along to a manager.
The manager will also look at the return and either designate it as accepted as is or assign it to an auditor. That second auditor can now accept the return or schedule an appointment with the taxpayer. If your return is in that last group, you are about to be audited.
Question: Where will the audit take place?
Answer: The IRS says on its website that some audits are done completely by mail and some are done in person. If you are notified of a correspondence audit, you can request it to be in person if you anticipate trouble getting financial records by mail to the IRS.
Question: How far back will the IRS dig into my returns?
Answer: Typically, the IRS includes your returns for the last three years in its audit, but the federal agency says, "additional years can be added if a substantial error is identified.”
Question: Can I appealthe audit results?
With the help of an experienced, skilled Chicago or Cleveland tax attorney, you can appeal the results. You can contact the law offices of Robert J. Fedor, Esq., L.L.C. to discuss your options.