Surprising Things to Know About the IRS Audit Process

Like most taxpayers, you dread all interactions with the IRS. But while filing your tax return is merely unpleasant, an audit is another matter altogether. Trepidation is only natural, but IRS audits are likely to defy your expectations — both for better and for worse. A few of the more surprising aspects of IRS audits are highlighted below:

IRS Audits Are Rare

Most taxpayers never need to deal with audits. According to IRS data, fewer than one percent of returns are subject to auditing. If you receive W2s and earn an annual income of $100,000, your chances of suffering an audit are especially low. Still, it’s best to be prepared, as the last thing you want is to be caught off guard if you prove the exception to the rule.

Many Audits Focus On Mail Over In-Person Interactions

If you’re dreading that eventual face-to-face meeting with the IRS, you might be pleased to learn that your audit could occur entirely through the mail. Commonly referred to as a correspondence audit, this process is often reserved for taxpayers who have clearly made minor typos or math errors. If you send the appropriate documentation through the mail, you should be good to go.

You Don’t Actually Have to Speak With IRS Representatives

Not in the mood for talking with an IRS representative? We can’t blame you. While your independent streak may have you eager to take care of your tax issues on your own, sometimes it’s best to show restraint and let an enrolled agent handle the situation instead. You aren’t required to deal with the IRS by yourself, so don’t feel pressured to speak with representatives before seeking assistance from a professional you trust.

If you’re feeling nervous about your IRS audit, don’t feel like you need to take on this nerve-wracking process alone. The Highland Tax Group could prove a valuable resource at this difficult time. Contact us today to discover how we can guide you through the audit process.