Correspondence Audit What to Do When You Dont Have All Your Paperwork

If y'all are ane of the less than ane percent of people who receive an IRS audit letter, don't panic. More likely, your revenue enhancement return was flagged because of ane of these mutual IRS audit triggers.

For most mail audits, the IRS asks you to explain or verify something simple on your render, including:

• Unreported income
• Filing status
• Dependents
• Itemized deductions
• Eligibility for credits

Bold that you were totally honest when filling out your taxation render, your audit can likely be handled with relative ease. Yet, if you were intentionally quack in your filings, y'all could end upwards in hot h2o. Either fashion, if yous receive an audit letter, the showtime matter you lot should do is open it immediately.

If you had your taxes for the year in question done by a revenue enhancement professional, contact him or her to inquire for clarification about the problem. If he or she is unable to assist or if you don't have a regular tax professional, consult a qualified tax professional correct away and enquire for a review of your return.

Here are a few other things to keep in mind.

How to Identify an IRS Audit Letter of the alphabet

Only considering you receive a letter from the IRS doesn't hateful yous're being audited. In many cases, the IRS will send a letter just asking for boosted information or clarification of details listed on your tax return.

An IRS audit letter volition come up to you lot past certified post. When yous open it upwards, it volition identify your proper noun, taxpayer ID, grade number, employee ID number, and contact information. The first line of text within your letter from the IRS may state something along the lines of "Your (land or federal) income taxation render for the yr shown above has been selected for examination."

Your letter will also reveal the primary focus of the inspect and what documentation you need to provide to resolve it.

In well-nigh mail audits, the IRS requests receipts or documentation to evidence the item in question on your render, as well as an explanation of your circumstances that led to the filing.

IRS Audit Letter Examples

The following are samples of actual IRS inspect messages that our clients have received. Click to view each.

• IRS Correspondence Letter of the alphabet
• Observe of Audit Meeting
• IRS Letter of the alphabet CP2000

Determine How Y'all're Being Audited

At that place are a few types of IRS audits, each with unique requirements. Agreement how you are beingness audited can help you determine what documents you need to gather and where to ship them.

Correspondence Audit: The IRS requests additional information regarding a part of your tax return, such as receipts or canceled checks.

Office Inspect: The IRS requests that you bring specific documentation into your local IRS part, where your audit will exist conducted.

Field Audit: An IRS agent shows up at your identify of business to carry a contiguous audit.

Taxpayer Compliance Measurement Program Audit: The purpose of this audit is to update the data used to write the computer scoring program used past the IRS. In this case, an all-encompassing examination of your tax return takes identify, and every item must be substantiated by documentation, including birth and marriage certificates.

How to Properly Reply to an IRS Audit Letter

It'southward imperative to respond to the IRS as soon as possible with either a phone telephone call or an audit response letter inside thirty days. Any longer, and you lot could exist penalized.

Gather Your Documentation

Afterwards you've read your IRS audit letter and adamant why the IRS chose to audit you lot, you should get together all of the documentation that supports the deductions in question. This may include receipts, appraisals, canceled checks, or mileage logs.

Generally speaking, the IRS has three years from the filing engagement to inspect you, so it'southward a adept practice to save all of your tax documents for at least this long. Nevertheless, in cases of fraud or failure to file, they could go back much farther.

If you failed to save any documentation to show that your claims are valid, try to garner back up from 3rd parties that may possess a reasonable manner to verify the accuracy of your claims. For instance, if you are existence audited over donations made in 2017 and don't have whatever evidence, reach out to the charities involved and ask them to send you documentation from their records.

How to Write an Inspect Response Letter

A qualified tax attorney can help yous to craft a compliant audit response letter. It volition include:

• Revenue enhancement ID number
• Total name
• Contact information
• Employee ID
• Business ID (if applicable),
• The name of the IRS officer who is in charge of your example

The letter of the alphabet will also carefully address each finding issue that the IRS stated in your audit letter, provide all documentation attached to your letter of the alphabet, and request a fourth dimension and date to run into and resolve the finding issues.

While it may be tempting to write the letter of the alphabet yourself, at that place is some gamble involved. An audit response alphabetic character must be flawless, dotting every I and crossing every T, precisely to the IRS' specifications, one error could delay a resolution to your audit.

An experienced taxation attorney volition know exactly how to respond to the IRS based on your unique circumstances and the reasons for your audit. When done correctly, an audit response letter can quickly expedite a resolution to your examination.

Afterwards you or your tax attorney ship in your documentation, along with a written explanation of why you disagree with the findings, the IRS volition review your information and send a response.

What Happens if You lot Don't Answer to an IRS Inspect Letter of the alphabet?

If you fail to respond to your IRS audit letter of the alphabet within the allotted 30 days, answer late, don't respond at all, or don't respond correctly because you failed to contact a tax attorney, in nigh cases, the IRS will disallow the items in question on your tax return and send you a neb – plus penalties and interest accrued from the engagement of filing.

Merely equally it volition hurt you lot to reply late, incorrectly, or not at all, it'southward as well of import non to transport multiple responses; this confuses the IRS. If their central processing heart doesn't associate all of your messages, it could appear as though you lot don't have a complete response, preventing the IRS from understanding your position, and ultimately causing y'all to be penalized.

How Long Does it Take to Resolve an IRS Audit by Mail?

Mail audits can take anywhere from 3 months to more than a year to be resolved. Yet, by responding accurately and on fourth dimension, with the assist of a tax chaser, you have the best shot possible to get things wrapped up in only a few short months.

What Happens if the IRS Decides Yous Owe More?

If the IRS tax examiner determines you owe more taxes, and adds penalties, you can simply hold to pay or ask the IRS Appeals Office to review your case. They'll look at your case and any new information y'all have and give you an independent analysis.

If you lot do end up owing more taxes and you don't take the money readily bachelor, you don't accept to pay immediately. You lot can ready upward a monthly payment plan with the IRS, or ask for an extension. If you are going through a fiscal hardship, the IRS offers other arrangements that may let you to defer payment or settle.

Although ignorance is bliss, the absolute worst thing you tin do when the IRS sends you an inspect letter is to ignore information technology. The problem volition non get away, and you have a finite amount of fourth dimension to respond before the inspect detect turns into a taxation bill.

If you receive an audit letter from the IRS, contact a qualified revenue enhancement attorney to assistance you confront this situation head-on for the absolute best outcome.

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Source: https://atltaxlawyers.com/what-to-do-when-you-receive-an-irs-audit-letter/

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