If audited by state will it affect your federal also.

[MichaelL1 · Accepted solution]

Yes. most of the time a State Audit will also impact the Federal return. 

IRS and the States share audit reports.

The only times it will not impact the Federal is if it is a State only issue, like for example contributions to a 529 savings plan only go on a State return (not Federal). 

[stevent812]

False my state was audited but my Federal was not.

[DMarkM1 · Accepted solution]

Yes.  An audit at the state level does not necessarily trigger an audit at the federal level, but the information is shared by the taxing agencies.  If the IRS sees a potential change in federal tax liability due to the state findings, they may ask for information/clarification via a letter.  

[MichaelL1]

I do not want to enter into a debate about this, as I said, "most" of the time when you are audited by the State Taxing Agency or by the IRS, the other agency will look at the audit report and if there if there additional tax (that exceeds their tolerances) you will get a audit report from the other taxing agency.  

In your case, if you were audited by the State for income tax (and if there was a substantial tax change that also impacts the Federal return), you should at some point in the future get a letter with a IRS audit report.  It can take many months from the State audit for the IRS to send out the Federal audit report. 

I worked for IRS for 34 1/2 years, and part of that time I was a Fed/State coordinator that made sure these reports were shared.  I also was in charge of correspondence audit at another point in my career.  

[jonnymantyi]

• So it would probably put a hold on federal before the realese it 

[stevent812]

No one is debating ,just stating my opinion of what happened .Take  deep breath and calm down.By the way my audit was in 2014 was just to verify information.Random audit.Also you don't have to put your whole life story out there to try and make a point."I worked for IRS for 34 1/2 years, and part of that time I was a Fed/State coordinator that made sure these reports were shared.  I also was in charge of correspondence audit at another point in my career. " You sound like you where a little upset about my remark.Maybe try to be less obtuse next time.Have a great day Michael.

[christymain772]

So if my state is good my fed is good too

[Snow8732]

I just received a letter from the state (Not federal) saying I’m audited. When you received this ,obviously you didn’t receive anything from your federal right? Thing is when I check online ,it says “we have recieved your refund and it is being processed “ still when today is the 21st day since it was received. Did you experience this? Really worried about my fed now so any insight on what all u went through would be appreciated.

[MichaelL1]

Many States have put additional checks in place to ensure the refunds are going to actual taxpayer (and not filed by someone else).  This might be the case in your situaton.

You can always call the State that issued you the letter and ask them what is going on with the processing of your return.

If it was me, I would call the State.

[Ykeene31]

yes im going through the same thing my state was audit and my federal says  still  being processed im so worried I don't know if im getting my federal refund now because of the hold up with the state and everyone elses the federal is giving them there date NOT MINES 

[Ykeene31]

the state audit my refund taxes for additional information do you think in will get my fed and its been 21 days and its saying on the IRS website still being processed im so worried @michalle

[RobertG]

The state audit should not affect the processing of your federal return.

If the state audit results in a change to your tax, the state will share that information with the IRS.

If the state adjustment affects your federal return, you will receive correspondence from the IRS.

[Ykeene31]

How long does it take for the fed IRS to send you something in mail I did not get anything from the fed stating I owe them anything ever but I’m still worried because it’s saying still being processed date will available when approved topic 152 I’m so worried it’s the 23rd I sent off my ww2 info to the state already I have to wait 15 days for them to respond back should I worry about my fed 

[ChondelLO]

No, you shouldn't worry. Your return is being processed. For more information concerning tax topic 152 please click the link below.

https://www.irs.gov/taxtopics/tc152?vm