If someone gets audited, your immediately assumption would be that the individual in question is in trouble and will have to pay the IRS some extra money because of an inconsistency or error on their tax return. However, this isn't always the case. Sometimes, people who are audited actually get money back from the IRS because the audit discovers that the IRS was not owed as much money as the taxpayer contributed.
Getting audited sounds as bad as it actually can be. The phrase "getting audited" will strike fear in the hearts of many, and once they actually go through with an audit, they will understand why it is such an abhorred process. However, once you get over this feeling that is associated with an audit, you can start the process of addressing your audit in a timely and proper manner. This will reassure you and relieve some of the stress you feel.
If the IRS wishes to do an audit of your tax return, do not panic. In most cases, an audit is simply the government wanting to double check the numbers that were provided on your return. The IRS investigation will go smoothly if you have provided correct numbers for your calculations, income, deductions and write-offs - and have the documentation to prove it
If there is one word that makes both individuals and businesspeople alike nervous, it's the word "audit." Even if you're certain that all of your ducks are in a row, knowing that IRS agents are poring over your tax documents is enough to make you lose a little sleep.
As most of our readers already know, the Fifth Amendment to the Constitution protects us from being forced to incriminate ourselves. This is why police must tell people they arrest that they have “the right to remain silent.” In other words, nobody has to say anything during a police interrogation or in court that could get them convicted of a crime.
With April 15 behind us, many persons are feeling relieved, knowing that their returns have been filed. However, for a certain group of persons, their business with the IRS has only begun. For a few, a tax audit may be in store, which is something that most people fear.
Back on March 8, we shared some potential red flags on your federal income tax return that raise your chances of having the IRS audit you. There is a lot of advice about how to avoid an audit out there, some of it accurate, some of it false.
The good news is, the IRS audits very few taxpayers. Due in part to budget cuts, fewer than 1 percent of filers have been audited in the past three years, according to the Motley Fool, with just 0.86 percent of returns audited in 2014.