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In addition, self-employed individuals often don't realize that credit and debit card companies report the total dollar amount of all transactions to the IRS via a form 1099-K, Reams adds.
Other correspondence audits simply request an additional amount due based on IRS calculations. While even getting a letter from the IRS can be nerve-wracking, the odds that you get called in for a ...
But a correspondence audit can turn into an in-person audit if the issues become more complex. ... sources or report a smaller amount of income than you actually received. ... catch the IRS's ...
The IRS frequently warns the public of audit phone scams: If you receive a call demanding money, asking for personal information or threatening to have you arrested, report the incident to the ...
In the United States, an income tax audit is the examination of a business or individual tax return by the Internal Revenue Service (IRS) or state tax authority. The IRS and various state revenue departments use the terms audit, examination, review, and notice to describe various aspects of enforcement and administration of the tax laws .
The IRS warns taxpayers that the penalty for filing a fraudulent return is $10,000 — and that it can audit a fraudulently filed return at any time in the future. Explore More: How Much Is ...
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