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Chances of a tax audit are slim but still be prepared

On Behalf of | Oct 8, 2020 | IRS Issues

Finally signing the necessary documents or hitting the submit button on a tax return online can be a relief for any Atlanta resident. Having to handle tax matters can be confusing and stressful, and most people are happy to have their returns completed. However, even after filing all the necessary paperwork, there may still be some worrisome feeling that a tax audit could occur.

Almost anyone who is a taxpayer has the fear of being the subject of an IRS audit. However, the percentage of taxpayers who actually face an audit is actually small, typically less than 1% in fact. Of course, that still means that approximately one million people can face an audit, even if that is relatively small compared to the nearly 200 million returns filed.

People who earn a considerable amount of money or have mistakes or questionable information on their tax returns are typically more susceptible of being audited. The IRS wants to ensure that high earners are reporting their income and paying their taxes correctly, and the agency wants to double-check any information that could seem incorrect. Though the idea of facing this process can be intimidating, they are not always complicated affairs.

The exact circumstances of a person’s tax situation can greatly affect how the IRS handles a tax audit. Any time Atlanta residents receive notice that the IRS is taking a second look at their tax information, it is wise to go over their tax information again themselves and gain more knowledge on what type of audit they are facing. In any case, it may prove helpful to contact legal professionals experienced in tax law matters who could help throughout this nerve-wracking process.