Episode 62: In this episode, Timalyn explains why the IRS selects certain taxpayers for audits and reassures listeners that being chosen does not automatically mean anything is wrong.
Following up on last week's episode, What Is an IRS Audit?, Timalyn continues her audit series by breaking down how audit selections are made and why it is important not to panic if you receive an IRS notice.
Contrary to common fears, receiving an audit notice does not mean jail time or that you did something wrong. Many audits are selected at random or flagged through a computer system that looks for unusual patterns or differences compared to similar tax returns.
The IRS also uses related examinations, which means if your return is connected to someone else who is being audited, such as a business partner or investor, your return may also be reviewed.
Timalyn explains that:
Your tax return may be selected because it differs from statistical norms within your industry.
Amended returns do go through a screening process, but do not always lead to an audit.
IRS audit notices are always initiated by mail and never by phone.
Scammers often use phone calls to impersonate the IRS and gather personal information.
If you'd like more information on amended tax returns, you can check out episode 40: What is an Amended Tax Return? Timalyn also has a video on her YouTube channel that will walk you through How to fill out a 1040-X Amended Tax Return.
Timalyn shares real-life examples to help you understand why the IRS may request certain documents and emphasizes the importance of submitting exactly what is requested. Submitting more than what is asked for could lead to unnecessary scrutiny.
In this episode, you will also learn:
How to respond when you receive a request for documentation
What kind of records should you keep and for how long
Why receipts should be clear and specific when used to support deductions
The value of working with a skilled bookkeeper and having accurate financial records
Timalyn closes with an important reminder. As a taxpayer, you have rights. That includes the right to professional and respectful treatment from the IRS, the right to understand what the IRS is requesting and why, and the right to be represented during the audit process.
If you are feeling overwhelmed, you do not have to face the IRS alone. An Enrolled Agent, CPA, or tax attorney can represent you and help make sure your audit is handled properly and professionally.
Need Tax Help Now?
If you are currently facing an audit or have received a notice, schedule a consultation with Timalyn through her website 👉 www.bowenstaxsolutions.com
As we close Episode 62, make sure to subscribe on Spotify, Apple Podcasts, or your favorite platform. Follow Timalyn on social media to stay informed, empowered, and tax-literate. Remember, Timalyn Bowens is America's Favorite EA, and she's here to fill the tax literacy gap — one taxpayer at a time.
Thank you for listening to today's episode. For more information about audit support and tax relief services, visit: https://www.Bowenstaxsolutions.com. Got feedback or an episode suggestion? If you have any feedback or suggestions for an upcoming episode topic, please submit them here: https://www.americasfavoriteea.com/.
Disclaimer: This podcast is for informational and educational purposes only. It provides a framework and possible solutions for solving your tax problems, but it is not legally binding. Please consult your tax professional regarding your specific tax situation.
