A lot of New York residents are likely relieved that tax season is over. After all, filing a tax return can be time consuming and confusing. It is one less thing to worry about when the process is over.
Unfortunately, some people may feel haunted by their tax return if they are selected for a tax audit. People who made more than $200,000, those who are self-employed and people with higher itemized deductions generally are at a higher risk of being selected for an audit.
Those who are selected for an audit should not fear the worst. In addition, it doesn’t mean an individual has done anything wrong. An audit is simply a chance for the Internal Revenue Service to take a more in-depth look at an individual’s income tax return.
Most importantly, people should respond to notification that they have been selected for an audit in a timely manner. Ignoring audit notification could create big problems for an individual.
Most audits are conducted through correspondence. Although the IRS tends to avoid field audits, they may ask an individual to come to an IRS office if they have a multitude of questions for someone.
One of the most time consuming kinds of audits is the random audit. People usually don’t hear about that until months or even a year after a return has been submitted. A person selected for a random audit may be asked to visit an IRS office. To avoid saying things that could possibly be damaging, it is a good idea to bring along a legal professional who has experience handling tax law cases.