Every taxpayer who submits a return is subject to an audit by the Internal Revenue Service and although many Americans will never be faced with such an issue, knowing what to do next is critically important. Depending on the size of your return and many other characteristics, the IRS may choose to complete a closer examination of your return - especially if there are significant changes from one year to the next or if the figures don’t make sense upon an initial review.
Income level is just one of the factors that may affect your chances of an IRS audit. While these figures may change annually, going over the $200,000 threshold in household income seems to increase an individual’s chances of being targeted. In addition, there are other factors that contribute to the potential of being selected for an audit due to the varying tax situations and available assets to those in upper tax brackets.
First and foremost, if you are chosen for an audit the IRS will notify you via the United States mail service. There are numerous tax scams and others attempting to steal identity and gain access to funds and other information by appearing as a legitimate service - which is one reason the government operates as they do.
Instead of sending an email or calling on the phone, the IRS only initiates an audit through a letter addressed to the taxpayer and waits for a response before proceeding. Typically, the individual in question has up to 30 days in order to respond.
An audit can take anywhere from weeks to months and even years depending on the size and scope of the review. While these timeframes may vary, a majority are completed in a few months and also rely on the type of audit for a closer example.
There are four different types of audits and each requires varying levels of cooperation and materials. Depending on the specifics, the timeline can vary tremendously.
If you receive a letter, seeking professional assistance can be a quality first step. Even before you respond, letting a trained professional take a look at the specifics of what is being asked or needs to be examined can be a beneficial step in order to ensure the audit gets started correctly.
Fortunately, the tax experts at Bloch Rothman and Associates
are ready and willing to assist if you should need help navigating an audit from the IRS. In addition to providing a quality tax service and helping to navigate the intricacies of an audit, our group can also complete tax returns or answer any other factors associated with financial issues or concerns you may have. Serving in Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate or any other filings, don’t hesitate to contact us today. Available for all of your tax needs and filings, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and serving whatever your needs may be soon!