I Filed My Tax Return. What Are the Chances of an IRS Audit?

Building front with Internal Revenue Service Sign.

by Harry Galstian

May 11, 2016

Most people would agree that any notice coming from the IRS is scary news. So much so, that many taxpayers cringe when receiving correspondence and leave important notices, like a CP2000 Notice of Underreported Income, unopened.

Don’t let this be you! Burying your head in the sand like an ostrich will not make the problem go away. The most important thing you can do when responding to an audit notice is to know your rights, understand your options and seek professional help if needed.

What is a CP2000 Notice of Underreported Income?

Using the plainest language, a CP2000 Notice of Underreported Income means that the IRS has found a discrepancy between the information reported on your tax return and the information they received from other sources. The discrepancy could include a difference in income, deductions, credits, or payments.

The notice will also contain a proposed assessment of charges and a number to contact to challenge the assessment if you don’t agree.

How will they find me with so many taxpayers filing returns?

Some IRS audits are random. Last year alone, the IRS assessed over six billion dollars in additional taxes from underreporting. IRS computer systems take all of the W-2, 1099, and other filing information reported by employers, banks, etc., and compare it with filed tax returns.

What should I do?

Responding to this notice, and sometimes simply knowing what you can use to substantiate your claims, can be a daunting and stressful task. Luckily, Direct Tax Relief can help with IRS tax resolution services. With over 10 years of industry experience and a team of seasoned licensed professionals and staff, DTR handles an array of tax-related services, including IRS audit representation, the establishment of reasonable installment arrangements, Offers in Compromise for those who qualify, penalty abatement, and preparation of delinquent and current tax returns.

Need help with the IRS? Give us a call at 1-877-505-4829.