If you did this on your return, the IRS may call you at any time to cancel your refund
Taxpayers may raise suspicions and be investigated by the IRS if they make one simple mistake when filing their tax returns.
Tax return season is in full flow, which means millions of Americans will have already spent, or mentally spent, the money they know, or at least hope, they are getting back. Others, however, could be in for a nasty surprise from the IRS if they have made one simple mistake when filing their documents.
Why the IRS might investigate your tax return
To avoid your tax return being investigated by the IRS, make sure you are as accurate as possible with your calculations.
That means avoiding using too many round numbers, such as exact multiples of 100, which could raise suspicions. Unless, of course, those are the true figures and will check out when looked into.
A degree of rounding up, or down, shouldn’t raise any red flags, but approximate $895.25 to $895, rather than $900. If in doubt, state the accurate, exact amount. It’s always better to be safe than sorry.
What to do if you get an IRS audit letter
If you do receive a letter about an (unwanted) IRS audit, there are a few straightforward, logical steps you should follow: gather all documentation that supports the reported information and numbers, and be sure to respond to the IRS within the stipulated timeframe to avoid any additional penalties.
It may also be wise to seek advice from an account or tax professional.
How long do the IRS have to investigate your tax return?
The IRS generally investigates tax returns for that have been filed in the last three years, although most of them are from the last two. However, the discovery of a significant error may lead to up to six years of returns being looked into.
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