Why does the IRS audit? Primarily, the Internal Revenue Service believes taxpayers are motivated to honestly comply with the tax laws and filing requirements if there is a threat of a possible audit. In addition, auditing is important because it may generate more tax revenue for the government.
If you have not filed your taxes, do not make the error of thinking you cannot be audited by the IRS. Your income information has been reported to the IRS by your employers, financial institutions and investment companies. And your social security number is a matter of record. Your information is a part of the IRS computer system that randomly selects taxpayers for audit.
Once you have been notified of an IRS audit, you are required to respond within 30 days of the date of notice. Even if you have not filed your returns, the audit will take place. Perhaps you believe you cannot be found. The Internal Revenue Service has the right to file a Substitute for Return (SFR) on your behalf. They will use the income information in their system and estimate deductions to determine what you owe, adding penalties and fines.
You cannot hide from the Internal Revenue Service forever. The longer you wait to face the IRS and resolve your tax debt problems, the greater the financial burden. The IRS is a powerful agency with many resources enabling them to levy bank accounts, freeze assets and seize personal property.
You can prevent these collection actions by working with a qualified tax professional, but you cannot stop the audit. Let a tax expert help you through the process. Once you begin to communicate with the IRS, you open the door to obtaining a reasonable tax relief solution. Your professional tax representative is skilled in IRS negotiations, knowledgeable of IRS tax relief programs, and can protect you from intimidation, fear and confusion. You need not dread an IRS audit with a tax expert in your corner.