While many taxpayers worry that an audit is going to be a complicated and terrifying experience, the truth is that usually isn’t the case. Most people think of an audit as an examination audit where you sit across the table from an intense-looking IRS examiner. However, most audits actually take a different form: the correspondence audit. In most cases, a correspondence audit can be completed just by sending requested documents to the IRS.
How Correspondence Audits Are Initiated
Correspondence audits are typically triggered by software the IRS uses to compare your returns to the data sent to them by your employer, educational institutions, escrow companies, and various other parties. When the information sent to the IRS does not match up with what you reported to the IRS, the IRS will send you a letter asking for an explanation of the discrepancy. The IRS may request additional documentation to prove your tax return was filed accurately.
How to Handle a Correspondence Audit
When you receive a letter from the IRS notifying you that your tax return will need to be examined, you should contact a tax help pro right away. This is the best way to ensure your correspondence audit is handled quickly and accurately. A tax resolution specialist will be able to explain how you should approach this issue with the IRS. If you end up with an additional tax liability after your correspondence audit, your tax help pro will also be able to help you navigate appeal options and more.
To learn more about dealing with your correspondence audit, call Taxation Solutions, Inc. today. We’re the name to know for tax help!