January 22, 2008
Correspondence Audit
A correspondence audit through the mail is conducted when an error on your tax return is found by the IRS computers. You'll be told of the questions on an IRS notice and you will be asked to send documents to substantiate the tax return. You'll either be given a refund or asked to pay additional taxes if the error is mathematical.
You should always cooperate with a correspondence audit and be happy that you weren't picked for a face-to-face audit. Copies of your tax return and other documentation will come in handy in IRS problem audits.
No matter what the IRS�s request is, compare your copy of the tax return with the information on the IRS notice to validate the need for a correction or the necessity of additional taxes. Investigate further prior to sending the requested money. Mistakes are common in the IRS.
It's important that you do not ignore the IRS notice. If you dismiss the notice, you'll ensure that IRS problems will come your way. Read it carefully and promptly follow the directions.
Sign and date the IRS notice and mail it with the payment if you agree with it. If you disagree with it, follow the directions on the notice. Do this in a timely manner within the given due date. Include any duplicates of documents that'll support you.
The IRS will evaluate the information you have returned to them and decide if the claim is allowed. If that's the case, you'll be notified that the audit is over. If the IRS disapproves your claim, you will be sent an Examination Report. You will have to accept the changes and sign it or appeal the IRS findings in 30 days.
If you have queries regarding the audit, you can contact the name and number that is on the notice or write to the auditor and ask him to call you.
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