Nothing strikes fear into the hearts of people in Georgia and around the country like the news that their tax return is going to be audited by the IRS. Right off the bat, you will probably ask yourself a lot of anxiety-inducing questions: What did I do wrong? How should I get ready for the audit? Will I be facing financial penalties or worse? Do I need the help of an accountant or attorney?
The first thing you should do is calm down. Yes, the prospect of being audited by the IRS is unnerving for most individuals, but if you approach it logically and rationally, you should be able to get through it.
An IRS audit is usually conducted to see whether you filled out your tax return appropriately and the information you submitted is complete and correct. There are usually three outcomes. You find out that you owe the government money, they are going to owe you money or the auditor will deem your taxes as originally submitted alright.
Common reasons for being audited by the IRS
- You were chosen at random.
- Your tax return has some connection with another person’s tax return that is being audited.
- You did not disclose all your taxable income.
- You failed to report cryptocurrency transactions.
- You tax return contained typos, math errors and too many round numbers, which can spark suspicion.
If the IRS intends to audit your taxes, you would be notified by mail. Other methods of communication, such as texts, emails or telephone calls allegedly from the IRS and threatening you with dire punishment are most likely not authentic.
Above all, don’t ignore the impending IRS audit out of fear or reluctance to face what’s happening. Get your documents together, have all your information at hand and consider getting expert advice.
Facing an IRS audit can be challenging, so you may want a professional in your corner for advice. Think about engaging a certified public accountant or an experienced attorney to help guide you through the process.