topic If audited by state will it affect your federal also. in After you file

If audited by state will it affect your federal also.

keone1984 — Sat, 01 Jun 2019 06:43:55 GMT

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

MichaelL1 — Sat, 01 Jun 2019 06:43:58 GMT

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).

Re: Yes. most of the time a State Audit will also impact the...

stevent812 — Mon, 17 Feb 2020 19:51:56 GMT

False my state was audited but my Federal was not.

Re: If audited by state will it affect your federal also.

DMarkM1 — Mon, 17 Feb 2020 21:12:16 GMT

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.

Re: Yes. most of the time a State Audit will also impact the...

MichaelL1 — Tue, 18 Feb 2020 03:29:35 GMT

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.

Re: Yes. most of the time a State Audit will also impact the...

jonnymantyi — Tue, 18 Feb 2020 16:33:43 GMT

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

Re: Yes. most of the time a State Audit will also impact the...

stevent812 — Wed, 19 Feb 2020 14:54:50 GMT

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.

Re: Yes. most of the time a State Audit will also impact the...

christymain772 — Fri, 21 Feb 2020 15:09:39 GMT

So if my state is good my fed is good too

Re: Yes. most of the time a State Audit will also impact the...

Snow8732 — Fri, 21 Feb 2020 16:33:22 GMT

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.

Re: Yes. most of the time a State Audit will also impact the...

MichaelL1 — Fri, 21 Feb 2020 16:57:58 GMT

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.

Re: Yes. most of the time a State Audit will also impact the...

Ykeene31 — Sun, 23 Feb 2020 00:48:00 GMT

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

Re: Yes. most of the time a State Audit will also impact the...

Ykeene31 — Sun, 23 Feb 2020 00:58:33 GMT

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

Re: Yes. most of the time a State Audit will also impact the...

RobertG — Sun, 23 Feb 2020 01:30:03 GMT

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.

Re: Yes. most of the time a State Audit will also impact the...

Ykeene31 — Sun, 23 Feb 2020 13:40:44 GMT

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

Re: Yes. most of the time a State Audit will also impact the...

ChondelLO — Sun, 23 Feb 2020 16:09:18 GMT

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

Re: Yes. most of the time a State Audit will also impact the...

Jhford — Mon, 22 Aug 2022 18:44:34 GMT

Is there a legal source you can point me to verifying that the taxpayer is not required to notify the IRS about a state audit which resulted in a tax increase?
Thanks

Re: Yes. most of the time a State Audit will also impact the...

NCperson — Mon, 22 Aug 2022 19:41:28 GMT

I can point you to a source that states it is your responsibility to inform the IRS, assuming that whatever the state finds also increases your federal tax obligation.

When you sign (and this would include e-sign) your tax return, you sign a statement that says:

"Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. "

Look on Form 1040 where it says, "Sign here":

https://www.irs.gov/pub/irs-pdf/f1040.pdf

If it turns out that the State identified income that you did not report, it is likely it wasn't reported to the IRS either, so the statement signed that the return is 'true, correct and complete' is no longer accurate or truthful. Best to contact the IRS and says 'Oops, I need to correct my tax return." Better you tell the IRS before the IRS finds it themselves.

You have an obligation to correct your federal tax return if you later find something that would change what you fair tax obligation is, whether that is identified by a State audit or a mistake you caught yourself.

Re: Yes. most of the time a State Audit will also impact the...

Jhford — Mon, 22 Aug 2022 23:28:28 GMT

Thanks for the reply. I understand the declaration, but I don't think it's legally dispositive, and is effective only as of the date it was signed. If so, perhaps there is no statutory requirement since most states share their audit information with the IRS, anyway. Therefore, why is it the taxpayer's obligation to do the IRS' work for it by reporting it?
Thanks again

Re: Yes. most of the time a State Audit will also impact the...

NCperson — Mon, 22 Aug 2022 23:46:39 GMT

@Jhford I can not prove what doesn't exist; I can only prove what does exist.

<<why is it the taxpayer's obligation to do the IRS' work for it by reporting it>>

then by that logic, why file the original return either?

the obligation is because failing to do so under a voluntary compliance system would be tax evasion.

From the IRS website:

The U.S. income tax system is based on the idea of voluntary compliance; it is the taxpayer's responsibility to report all income. Tax evasion is illegal. Some people try to evade paying taxes by failing to report all or some of their income.

https://apps.irs.gov/app/understandingTaxes/student/whys_thm01_les03.jsp

Re: Yes. most of the time a State Audit will also impact the...

ee-ea — Tue, 23 Aug 2022 00:13:01 GMT

"Why is it the taxpayer's obligation to do the IRS' work for it by reporting it?"

When the IRS does do its 'work' a looong time will have passed and the interest will have grown. Tell the IRS and save money.