Did you know that financial institutions, schools, employers, and others submit tax information about you to the IRS? These types of information include interest earned, tuition paid, wages received, and other pertinent reports regarding money paid and received. And if the information you report on your tax return doesn’t match the information reported by one or more of these other institutions, you could find yourself in hot water with the IRS!
In most cases, you’ll be subjected to a correspondence audit in order to resolve the discrepancies between your tax return and the data reported by one or more other reporters. This type of audit enables you to supply supporting documentation via mail to back up your tax return and/or correct any errors. In fact, in some instances, correspondence audits can be resolved without any additional tax liability.
Keep in mind that a correspondence audit is not the scary face-to-face grilling often depicted in the media. While the IRS does include face-to-face audits in their arsenal of tax compliance tools, they typically reserve these for taxpayers who substantially underreport income or who frequently fail to display ample income to support a lavish lifestyle. When average taxpayers find themselves facing audits, it is more likely to be a straightforward correspondence audit.
Taxation Solutions, Inc. does recommend, however, that you work with a tax professional no matter what type of audit you are facing. A correspondence audit may appear straightforward, but you’ll want to make sure that everything is handled 100% correctly to minimize any potential fallout. So instead of winging it on your own, you can safeguard your audit’s outcome by relying on a trained professional with more than 40 years of experience helping taxpayers just like you overcome tax audits. Call Taxation Solutions, Inc. today!