Post # 1
I just got a letter from the IRS saying my return is “under review.” We don’t have to do anything at this time, but our refund is on hold and tax issues make me nervous. We are always honest on our taxes and have an accountant, but I have heard so many horror stories that I don’t know how I am going to get this off my mind for the next 60 days.
Has anyone gone through this? What ended up happening? Any positive thoughts? Thanks!
Post # 3
@guitargirl: I’m not sure if my situation is very similar to yours, but I’ll share my story.
I got audited the year after I bought my condo and was scared S%$tless. They gave me a timeframe (about three months) to provide documentation for all the things I had itemized on my return and I didn’t get their letter until abou two months after they had sent it (I had obviously moved). I was also scared because I also donated some items and was worried that because it was above a certain amount, I’d have to provide a detailed account of the value of those items.
However I spoke with someone in the IRS’ audit division and they were pretty helpful. They told me the reason I got audited was because to the large refund I got that year (compared to years prior) due the points I paid down – basically unusual activity. They also gave me an extension of about a month, and actually got a 2nd extension because my tax guy was hard to get a hold of, and I needed to get copies of documents I had misplaced from my mortage company, etc. In the end, it worked out and they closed my case in less than a month after they erceived my documents.
As long as your accountant is basically on the up and up, you should be good.
Post # 4
I’ve had credits reviewed where I had to provide receipts. I also know of people who were auditted. They were worried at first, until they realized what was going on. It was a group who all lived under the same shady landlord. They were all being auditted only to get more information to nail the landlord.
Post # 5
Don’t worry about it. Your accountant will help guide you through it, keep all your back up paperwork in one place so you can send copies if needed-always keep a copy for yourself too. If you were honest about everything then most likely your accountant will respond to any requests and send them whatever documentation they ask for and hopefully you’ll get another letter soon saying everything’s ok. Did the letter mention anything they were specifically looking at or did your accountant say what she thinks might have triggered the review?