Tax Tips The IRS Random Audits Are Back Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxLee Published Jun 15, 2007 3 min read The IRS has recently announced that, starting in October, 2007, they will be randomly picking tax returns for full-fledged audits. The plan is to select 13,000 income tax returns, from the 136 million returns filed for 2006. They expect to continue this plan for the next several years. The IRS is under strong pressure from Congress to close the $290 billion tax gap (the difference between what is collected and what should be collected.) To do this, the IRS needs “fresh” data to update their computer program that statistically figures out which tax returns to audit in the future to get the most money. If you used TurboTax’s Audit Alert review, does that take you out of the IRS random audit pool? No. The Audit Alert examines your return and identifies inconsistencies that could trigger a review. With random audits, all returns are in the audit pool. The chance of receiving this random audit is slim but if you do get picked, don’t panic. The IRS says that some audits will be handled through the mail, particularly if most of the return data (like wages with a W-2, etc) can be verified in the IRS databases. However the majority of the audits will be handled face to face with an auditor in your local IRS office. So what do you do if you get one of these random audits? If you’ve already purchased TurboTax Audit Defense prior to receiving the notice, you’re in good shape. Contact them and they’ll handle the audit for you. It’s what they do for a living. If you have a simple return, you might do alright handling the office audit yourself. Just be sure you have all the documentation backing all the amounts on your tax return. If you have a return with numerous types of forms (K-s, Rentals) and/or complexity (alternative minimum tax), it’s usually recommended that you get professional help from a lawyer, CPA, or an Enrolled Agent. All three are approved to practice before the IRS. By choosing one to represent you, you won’t need to deal directly with the auditor. That’s why you pay them. Beware that the more complex the tax return and /or the less organized are your documents, the more dollars it may cost. When collecting your information for the audit, be sure you have a copy of the tax return supporting documents (sales receipts, diaries, charity donation card) for every amount on the return, no matter how small the amount, and any letters that you have received from the IRS for the tax year being audited. If the audit uncovers a calculation error and you prepared your return using TurboTax, don’t forget TurboTax’s Accuracy Guarantee. Remember your chance of receiving that random audit notice is .0096%. You might have a better chance of winning the lottery. For additional information: IRS Updates National Research Program for Individuals Congress Will Push IRS to Get Tougher with Scofflaws What Is AMT and Why is It on My Return? Previous Post Do You Need to Fix Your Filed Tax Return? Next Post Summertime – Gambling – the IRS? Written by TurboTaxLee More from TurboTaxLee 2 responses to “The IRS Random Audits Are Back” I am in the same boat. I waited 21 days, no return so I called and found out I was selected for Random Review. They said 45 days or 6 weeks and that passed two weeks ago. Been calling and calling, finally got a live person only to be told that it is still processing and they have no idea how long it will take but once it’s done, then its a 21 days processing to receive refund. No notice was mailed to me ever, they don’t need any additional information, and say everything has been verified on my taxes, so I’m not sure what’s the hold up. I was told that if they don’t send a letter, it means they can verify everything themselves and need no further information. Reply I was audited this year and called the IRS to see why? I can not get a straight answer. Is there anything I can do to find out why and how long to expect my return? It was suppose to be here the day I received the letter for audit. Reply Leave a ReplyCancel reply Browse Related Articles Tax Planning 4 Myths About IRS Audits Life Tax Audits Explained (Not As Scary As You Think) Tax Planning What To Do If You Get An IRS Letter Tax News 7 Common Tax Problems (With Solutions) Tax News IRS Update: They Will Begin Accepting Tax Returns with… Tax Refunds What is the current IRS status on processing returns? Tax News Tax Day Update: TurboTax is Accepting E-Filed Tax Retur… Tax News IRS Updates “Where’s My Refund?” Tax Planning Should You Worry About Being Audited This Tax Season? Tax News IRS Will Begin Accepting Delayed Tax Returns Feb. 14
I am in the same boat. I waited 21 days, no return so I called and found out I was selected for Random Review. They said 45 days or 6 weeks and that passed two weeks ago. Been calling and calling, finally got a live person only to be told that it is still processing and they have no idea how long it will take but once it’s done, then its a 21 days processing to receive refund. No notice was mailed to me ever, they don’t need any additional information, and say everything has been verified on my taxes, so I’m not sure what’s the hold up. I was told that if they don’t send a letter, it means they can verify everything themselves and need no further information. Reply
I was audited this year and called the IRS to see why? I can not get a straight answer. Is there anything I can do to find out why and how long to expect my return? It was suppose to be here the day I received the letter for audit. Reply