Sometimes you check your mailbox, you will find a letter from IRS. Wait, what if this letter is not a tax refund? Then you probably have received a tax notice or a tax audit. So, what is tax audit?
When the IRS decides to crosscheck the details of your income, deductions and credit report on your tax return, a tax audit will be triggered. In other words, IRS wants to makes sure all your documents are correct.
You don’t need to be afraid when receiving a tax audit, since the IRS chooses a taxpayer’s return for audit based on random selection. Additionaly, your tax return will be checked if you are doing businesses with other taxpayers who are being audited.
The IRS will notify you by mail or email if your tax return is selected for audit. Pay attention, the IRS will never notify you via telephone. Don’t be trapped into these scams!
An IRS tax audit mail includes instructions of the audit procedure and contact information of an IRS representative. Follow the instructions and you can finish the tax audit soon.
After that, the tax audit will come to an conlusion. If you agree with the conclusion, you just sign an examination report and that’s all. If you disagree, you can appeal the audit results with the IRS via the court system.