irs audit letter

Eight Tax Return Items That May Attract IRS Audit

irs audit letterIRS scrutinizing your tax return can be very annoying, anxiety prone and a matter of tension for tax payer costing money and time . You can read what does being audited by the IRS mean? It is seen that  the first clue or doubt  that is responsible for selection of your tax return for Audit by IRS, actually  emanates from your tax return data. So, as the tax season has started and you may be preparing for filing tax return , it is important that you do not commit certain errors that , unnecessarily , puts your tax return in doubtful category  by the computerized system that selects a very small percentage of tax return for IRS audit or scrutiny . Here are most common reasons  for IRS audit triggers Read More »Eight Tax Return Items That May Attract IRS Audit

CP2000 and 36 Most Common IRS Notices & What They Mean To You !

CP2000 is one of the most common and maybe the first major notice you may receive after you filed a tax return. Now, IRS primarily communicates with you in form of notices and each notice covers specific issues about an account or tax return.Each notice has a distinct number so that you and everyone including IRS identify the basic issue related to your tax matter. So, when you receive a notice CP2000 it means that IRS while processing your return found certain discrepancies in your return and now proposing you through this notice certain adjustments – disallowance of some deductions or credit or addition of any income- to your income.So the meaning of CP2000 is that it is a notice of proposed adjustment for underpayment or overpayment.Read More »CP2000 and 36 Most Common IRS Notices & What They Mean To You !

What does Being Audited by the IRS Mean ?

Really every taxpayer has this question ” what does being audited by the IRS mean? in his/her mind . Psychologically taxpayers are generally scared of tax audit. The IRS audit of your tax return is nothing but close scrutiny of your income declaration and the claim of exemptions and various tax deductions. The IRS checks whether the claim is correct and as per the US Code 26 and other Rulings.Read More »What does Being Audited by the IRS Mean ?