When you submit your tax return, the IRS may select it for a review or audit. This process could occur years after a filing date, or within the same tax year you filed a return. During this process, the IRS will likely ask you for supporting documentation—and in some cases, interview people close to you—to assess whether your return and the corresponding tax payment were accurate. Many people who are being audited by the IRS worry if they will still get their refund for the year. However, even if the IRS selects your return for an audit, it’s likely you will still get any refunds on your return, since the auditing process can be a lengthy ordeal.
If you are being audited by the IRS, having a skilled tax resolution attorney on your side can be an essential resource. With an experienced attorney, you can navigate through the process with ease. Here is some important information to know about the audit process and how it may or may not affect your refund.
How the IRS Selects Returns for Auditing
There’s a multitude of ways your IRS could be selected for a return. The IRS relies on computer algorithms to identify outlier returns that have the potential for discrepancies. If these algorithms give your return a bad “score” based on their criteria, the IRS may select your return for an audit. Additionally, the IRS will usually audit individuals whose tax documents—1099s, W-2s, etc.— have different information than was submitted in their return. Lastly, the IRS also tends to keep tabs on large corporations and other wealthy entities that tend to do whatever they can to pay as little as possible. If you fall into this category, you may be audited even if your return doesn’t have obvious discrepancies.
What Happens During a Tax Audit?
There are varying degrees of IRS audits. In general, the IRS will start communications about an audit via mail. In their first letter, the IRS will usually notify you of the audit and outline the various documents they need to assess your return. In more serious cases or if a person fails to respond to mail communications, an IRS agent may show up at your door. In the case of an in-person audit, the process will usually take place at your accountant or tax lawyer’s office.
Once your assigned auditor receives and reviews all the requested documents, they will either drop the case or inform you of discrepancies they found in your return. If discrepancies are found, it usually means you will have to pay additional money to the IRS. In the case that your tax attorney disagrees with the changes suggested by the IRS, you can choose to appeal the audit in court.
Choose Morgan Sebastian Law for Audit Representation
If you are being audited by the IRS, it’s easy to become overwhelmed by the process. Securing the help of a tax resolution attorney is the best way to ensure you properly navigate the audit process.
At Morgan Sebastian Law, Attorney Becky Sebastian is eager to help you navigate the complexities of your tax audit. As a trusted tax resolution lawyer, Becky Sebastian has years of experience representing business owners and individuals who are facing IRS audits. She can provide you with the professionalism and peace of mind you deserve when dealing with the IRS. You can count on her to document all the evidence needed to achieve a positive tax audit outcome.