![]() ![]() But the IRS processes millions of taxpayer responses to audits and notices. That’s because a central processing center must combine all your letters to understand your position. In fact, if you don’t respond, respond late, or respond incompletely, the IRS will likely just disallow the items it’s questioning on your return and send you a tax bill – plus penalties and interest. So, one IRS employee won’t be contacting you to handle the case and follow up. The IRS doesn’t assign your mail audit to one person. This is where it helps to know how the IRS works. Aren’t sure whether they’re responding correctly.Worry about a mail audit if you don’t respond to the IRS completely and by the deadline Mail audits shouldn’t cause the same anxiety as dealing directly with the IRS. Most tax evasion cases start with more complex face-to-face audits. And even if you don’t have receipts, your explanation may be enough to sway the IRS in your favor.Īnd remember, if you’re worried about going to jail for tax evasion, take heart. If you provide these by the deadline on your mail audit notice, you’ll generally end up OK. Provide receipts or documents to prove an item the IRS is questioning on your return.In most mail audits, the IRS is asking you to: That’s not nearly as intimidating as answering questions in an interview with an IRS agent, like in face-to-face IRS audits. ![]() If you’re audited by mail, you’ll need to respond to the IRS by mail with a complete written explanation. Income you didn’t report that the IRS knows about (like leaving off Form 1099 income).Most of the time, when the IRS starts a mail audit, the IRS will ask you to explain or verify something simple on your return, such as: Don’t worry about dealing with the IRS in person So, should you worry about your mail audit? Yes and no. But because many face-to-face audits involve higher-income and business returns, the average additional tax owed is almost 10 times higher than in mail audits. The average amount of additional tax owed in an audit is over $6,500, not including penalties and interest.įace-to-face audits have only a slightly higher change rate: 92%. In fact, in 2016, the IRS made a change to the return in 89% of all mail audits. The IRS does 70% of audits by mail.īut just because you get an IRS audit letter instead of an IRS agent at your door, the outcome may not be much different than a face-to-face audit with an IRS agent. For most people, this is far from reality. Maybe you’ll have to sit in a cold, dark room with a suited and well-starched IRS agent who asks cutting - and maybe confusing - questions about your tax return and your income. Most people think IRS audits are probably very bad. ![]()
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