Audit Letters From the IRS

By: Rich Chappo..
A letter from the IRS used to send each of us into fits of anxiety. Now we get them all the time, since the IRS likes to send us forms every other day. That being said, there is still one particular letter you do not want to receive from the agency.Thick letters from the IRS are pretty much the norm. This is particularly true if you own a business.
The thick letters are full of forms. Ah, but what about a thin letter from the agency? This is typically nothing but bad news.An IRS notice. It sounds fairly bland, but this is the stuff of heart attacks. Why?
The innocuous sounding IRS notice is issued for one purpose. It is notifying you the agency thinks there is something dubious about your taxes. You might want to put 911 on speed dial.Importantly, this one page letter is not always the precursor to doom. In very rare circumstances, it can contain good news.
I once received one. After recovering from an anxiety attack, I actually read the letter and learned I was due just under twenty bucks.Audit. It is a word that can make a grown man or women weep like a small child. Well, most of these letters are notices of audits.
Sorry.
Ah, but the audit will rarely be the type of horrific experience you have heard of from someone who knew someone.The IRS is understaffed. As a result, it does not have the ability to do a massive number of audits.
Instead, it does many of them by mail, known as correspondence audits. This means you get to skip a meeting with an agent and try to resolve things through the post.With this type of inspection, the IRS tells you point blank what it is having a problem with in regard to your taxes. The agency will usually suggest a way it can be resolved and any impact on what you owe. There is no person to person interaction.Once you receive the letter, the burden is on you.
You are usually allowed to do nothing if you agree with the proposal of the agency.
If you want to fight it, you have 30 days to send a letter saying as much and why.Most of the proposed changes from the agency are deemed acceptable by taxpayers and the just accept them. If you fall into this category, you can end the audit by doing with the agency asks. I
f you don’t, you can fight the IRS with all that entails.If you receive the dreaded thin letter from the Internal Revenue Service, don’t panic until you actually read it from beginning to end. It may be easy to resolve. If it looks ugly, get professional help or risk the IRS rolling over you like a bug.
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