How to handle an extortionist IRS audit

Subject: How to handle an extortionist IRS audit Mon Apr 01, 2013 10:06 pm

Many taxpayers are fretting over the end of the tax-filing season. But the event that some people fear the most—the audit—can happen at any time of year.

The Internal Revenue Service audited 1% of individual tax returns filed in 2012, according to data released this week. And of the 1.5 million individual returns examined, about 75% were conducted by mail through what is called a correspondence audit, which the IRS typically uses to request more information, tax pros say.

Sometimes, the problem is that the IRS’s numbers don’t match the ones you submitted (the IRS has matching software to help it compare the income on a tax return with the 1099 and W-2 information it receives, experts say). Other times, the IRS may write to ask for documentation, such as copies of receipts, to support the credits and deductions you’re claiming. But getting a notice from the IRS doesn’t necessarily mean the agency is going to require you to pay more taxes, says Melissa Labant, director of tax advocacy for the American Institute of Certified Public Accountants. Indeed, 54,000 audits actually resulted in additional refunds last year, the IRS reports.

More: http://blogs.marketwatch.com/taxwatch/2013/03/29/how-to-handle-an-audit/

How to handle an extortionist IRS audit

How to handle an extortionist IRS audit

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