How do I know if my return is being audited

[veronica-switzer]

I don't understand pATH act

[natashav2003 · Accepted solution]

That above "answer" answered nothing lol. If you are being audited you will get a letter in the mail from the IRS. they do not email or call, ever! Only notify by letter.

[Gg32]

What are the chances irs holds your return if your notified that your being audited? Or they are requesting documentation to prove you qualify for the EIC? 100%? I just received my state refund Thursday.

[macuser_22]

The "answer" addressed "I don't understand pATH act " that the poster seemed to be confused with.   Refunds being held because of the PATH act have nothing to do with being audited.

[natashav2003]

They do hold your return if you are audited

[macuser_22]

Your return is what you file.  Your *refund* might be held for a verity of reasons, checking for fraud or ID fraud is one.  That is not an audit.  The initial tax return is very seldom  set aside for an actual audit, although the IRS does do random compliance audits selected totally at random.  The chanced of that are very low.

Errors, missing income, and other IRS checks usually just result in a letter (CP2000) from the IRS which is not an audit.  It would be very unusual for an actual audit of a tax return to take place sooner than a year after the filing date.

In no event would an audit take place before the due date of the tax return (April 18, 2017) since the return is not official or final until then and can be changed by the tax payer.

[macuser_22]

Also, Audits are almost always done in person.

See this IRS FAQ dealing with audits:
<a rel="nofollow" target="_blank" href="https://www.irs.gov/businesses/small-businesses-self-employed/irs-audits">https://www.irs.gov/busine...>
It says small business but applies to individuals as well.

[Gg32]

Thanks for the information.
When you say in no event will an audit be initiated before 4/18/2017, is that law? Because i did get a letter saying im being audited for 2016. The letter stated that they need documentation for the EIC and head of household that i claimed in my 2017 return. I faxed them all the information requested the same day i got the notice. Additionally, I've already received my state refund. I thought that the PATH ACT law meant that the entire return will be held until Feb 15th.
Im confused now. Uhhh.

[macuser_22]

That should not be an audit, just a letter requesting more information so that your tax return can be processed.  

The reason for the refund delay in the PATH act is so the IRS can match W-2 information from the employer with the EIC on your return.  Since employers have until Jan 31 to send the W-2, in the past the IRS would blindly pay the EIC before they even had the W-2.   The PATH act give them the time to do that.  Perhaps they did not find your W-2 or your employer was late to sent it, so they sent you a letter so that they could verify your income.

The PATH act in only federal, not state.

[Gg32]

Ok. I see what your saying. So assuming, which i shouldn't do, they just needed to verify i claimed 2 dependents on my W2 and everything checks out, how long does something like this situation take? You sound very knowledgeable in this area. Weeks, months?

[Gg32]

The man that helped me in respect to the documentation i needed to send them, was from Block Advisers and he said what i sent them was rock solid and bullet proof, his exact words. He then said this will probably end sometime in JULY! Most likely he said i would get my refund the first week of July. I wanted to throw up when he said that to me.
But thanks again !

[macuser_22]

I really don't know -  the PATH act is new to everyone this year.  Only the IRS can answer that.

[macuser_22]

"Block Advisers"?? That sound like H&R Block, not the IRS.

[natashav2003]

If you got  letter saying they need more documentation, they need more documentation. If you got a letter saying you are being audited, you are being audited. Two VERY different things. Audits may or may not be done in person. My sister was audit three years in a row thanks to divorce, moving from state to state, remarriage, more kids, moving again yadda yadda lol. she never was audited in person any of those three times. They hold your return until the audit is complete...all of it. State refund is separate from federal refund.

[Gg32]

If you say it can't be an audit then why does this letter say "we will notify you upon the completion of this audit".