Our State refund was held until we called or logged into the State web site. They did say that it was a review but not an audit. Everyone knows that is a code for Audit. Then they sent a paper showing that a revisement saying that we owe them money. My husband was out of work for three months for medical reasons. That does not include my medical issues either. I did not think they Audit people who makes less than $40,000 a year.
states audit returns regardless of income reported. some are just randomly selected for review and if there are red flags possibly a full audit. Otherwise, a lot of people would cheat and under-report their income so they don't get audited and the state might be none the wiser.
as an option
The Audit Defense service is provided by TaxResources, Inc., also called TaxAudit.com, in partnership with TurboTax. If you paid for Audit Defense and you received a notice, call TaxResources, Inc. at 877-829-9695, or report your notice on their web site at http://intuit.taxaudit.com/. Do not contact the state until you have spoken to TaxResources. They may contact the state on your behalf. note that if there is an error on your return they may be able to do nothing.