01 Apr What Does It Mean to Be Audited at Work?
First, let’s get one thing clear. Audits are not a common occurrence, despite what many people believe. In fact, an average person has less than a 1% chance of being a target of an IRS audit.
In essence, this means that there is little to no reason to fear an audit if you’re a regular taxpayer. However, even if you end up being audited for some reason, there is still nothing to fear. A typical IRS audit today is very minimally intrusive, and most people get over them quickly and without any pain.
Naturally, on the off chance you get audited, it’s still worth knowing how that process works, especially how an audit at the place of your employment functions.
How Audits Work
Every audit starts the same. The IRS sends you a letter, one that comes from the official postal service and bears the official IRS stamp. It’s important to know that this is the only way the IRS begins communication with a taxpayer. Take a look at this article if you want to know how to avoid IRS scams that are so prevalent today.
The letter will let you know that you owe the IRS money, and it will most likely ask you to deliver specific documents that they need. It’s important to respect their demands and deliver what they need on time. That way, you’ll be compliant and avoid letting the process drag on. You’ll also avoid additional remarks and possible punishments from the IRS.
In most cases, an audit will involve the IRS showing you that you made a mistake or an omission on your tax returns. You will then have time to inspect and see if you really made a mistake. In such a case, all you need to do is correct the error, and the audit will soon be completed.
If you feel that you have not made a mistake, then you can let them know and proceed with the audit process. This is when the audit can change. The IRS might stop with the regular mail correspondence and move to the phone. You can thus proceed explaining your case over the phone with a specific IRS employee. You can also opt to use a tax resolution professional if you feel you don’t know how to deal with the IRS on your own.
In this case, if the audit hasn’t been completed quickly due to there being more than a simple error that needs rectifying, you can get audited at work. It’s worth noting that no audit starts with a visit to the place where you work. The IRS doesn’t do that. They only opt to visit you at work during an audit, not at its start. They will always inform you in advance when and if they plan to come to your workplace.
It’s important to know that this is very rare and only happens if the IRS was unable to deal with your case through regular correspondence, or because they need to check some specific financial statements or something similar.
In any case, the reasons vary. So, if the IRS does opt to visit you at your workplace, despite how rarely they do this, you should always contact a specialist for help. We at the Golden Tax Relief can be that specialist who helps you survive the audit painlessly and quickly. Contact us to learn more.