Last year, the IRS sent out over 5 million automated audit inquiries. The IRS is attempting to increase revenue collection by closely scrutinizing tax individual tax returns that are most likely to contain errors. And, it defines those types of returns based on the Schedules filed to claim deductions and/or Credits. These targeted forms are usually: Schedule A (Itemized Expenses), Schedule C (Business Expenses), Schedule E (Supplemental Income) and Schedule EIC (Earned Income Credit). Most audit inquiries can result from:
- Questionable deductions, credits
- Early 401(k), IRA payouts
- Missing income
- Incorrectly filing out tax forms
- Home office, hobby claims
- Reporting large personal or business losses
- Underpaying your taxes
The IRS has several different levels of audits, ranging from “no big deal” to “OMG.” Not every inquiry from the IRS means you will owe the proposed amount due. If questions arise about your math, items seem to be omitted from your return, or your figures don’t match those on your W-2s, 1099s, or 1098s, a simple correction or explanation may be all that’s needed.
The IRS makes mistakes, too. Don’t assume the IRS notice is correct. Check things out. Respond to the request as quickly as possible and, if you have doubts about the answer, consult your tax professional if you have one. Harvest Time Tax Services offers limited audit guidance with every paid tax return that we prepare. Click here to learn more.
If it turns out that a legitimate error was made on your tax return, you could be liable for any adjustments resulting in a balance due. “I am recommending to all of my clients they should add Audit Protection to their return.” With audit protection you’ll get:
- Up to $2,500 reimbursements on audit bills
- A licensed CPA or EA to bring the audit to a resolution
- 3 Full yrs coverage for onetime signup fee
- IRS Identity Theft Assistance
- Protection on Schedules A, C, E and EIC
- Free & Discounted Legal Services
Don’t wait until it’s too late! Unexpected IRS inquiries and audits can be a frightening experience; especially when you potentially owe. Get Audit Protection through one of the nation’s most trusted audit assistance companies for a single low payment of only
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The 2015 tax return protection deadline to sign up is June 30, 2016. Don’t delay!Purchase Audit Protection