Most people living in Georgia take care to submit accurate tax returns. However, some tax documents end up being flagged by the IRS’s algorithms, subjecting filers to an audit. Interestingly, there is some evidence that it is not the wealthy who are the most likely to be audited, but those who claim lower incomes and might be eligible for the earned income tax credit.
Low-income individuals and families can be eligible for EITC, which is intended to provide additional income for struggling households and to incentivize work. In some cases, the credit could make up the bulk of an income tax refund. Since calculating the EITC can be a complicated process, claimants often make mistakes. Many filers either fail to claim the credit or miscalculate the amount that they are eligible for.
As a result, the IRS audits these returns to ensure that filers are not being overpaid. Unfortunately, this means a delay in receiving a tax refund, something that can be very difficult for low-income people who rely on the refund to make ends meet. While many audits take place by mail, with no need to meet with an IRS representative, the process can still be confusing and upsetting.
Individuals who are concerned about a tax audit may benefit from speaking with an experienced tax attorney. The lawyer could review the client’s circumstances and tax returns before making recommendations regarding dealings with the IRS. In some cases, the attorney might also directly represent the client in IRS interviews and negotiations.