Do you owe the IRS in back taxes? If so, the following news about audit reconsideration can be helpful. This refers to the reconsideration of an audit determination. An audit is where you get a letter from the IRS asking you to bring your boxes of receipts down for an audit. This is when the IRS has every intent of going through your records line by line.
If you didn’t file at all, the IRS has authority to prepare a substitute for return for you. This is when things can get out of control. The IRS suspects that you’ll owe money and they gather up you 1099s and W-2s and calculate what they think you own. You get one exemption and one dependent, yourself. They’ll likely choose the highest filing status that can be found for your category. Throw in some penalties and the numbers for what you owe can seem staggering. Then, the IRS will start their collection process.
You have the option to file your taxes and correct any errors you think the IRS may have made. The IRS may accept your figures and update your tax filing status, but there’s no guarantee. If you don’t have a tax attorney, get one. Tax laws and IRS proceedings are too complex to navigate without professional help.