It’s common to wonder about receiving an IRS audit once you’ve filed your taxes. These in-depth reviews can create a level of disruption and cause individuals to automatically assume that there’s a problem with their report. Thankfully, that’s not always the case, especially if you were thorough in your tax preparation process. Put your mind at ease by considering the following answered questions and ensuring that everything’s in order for the next tax season.

What You Should Know About IRS Audits

Why was I selected for an audit?

In most cases, it’s completely random. The IRS uses the information to create a statistical formula for that tax season. They then enter the results into their National Research Program and compare the average with similar returns. Other reasons for an audit include visible issues on your tax preparation forms and transactions with someone who is also under review.

What tax returns will my audit cover?

These reviews can go back as far as the last three years. Simplify the process of acquiring the necessary information by maintaining a file of your current and previous tax preparation forms. Make at least one hard copy and create a backup copy on the computer to prevent loss.

How will the IRS contact me about the audit?

They’ll send a notice in the mail, requiring additional information on your tax return, such as income, expenses, and itemized deductions. If the amount of paperwork is too large to send, you can request an in-person interview. These are usually held at an IRS office, in the taxpayer’s home, or at their accountant’s office. Contact information will be available in the letter.

How long does an audit take?

IRS audits usually take three to six months to complete; however, it does depend on the complexity of the issues and the availability of information. If you require in-person meetings, then the flexibility in scheduling an appointment could also shorten or lengthen the process.

Keep everything in order for tax preparation by reaching out to Tudor Wilson & Associates CPAs in Honolulu, HI. This local accounting firm has been in the business since 1999 and tailors its services to meet customers’ needs. They keep up-to-date with the latest in tax services and utilize state-of-the-art technology. With an A+ rating from the Better Business Bureau®, these professionals are ready to help. For a full list of services, visit their website. Call (808) 592-2000 to set up an appointment.