Why Did My Government Tax Return Get Selected For An Audit?
In the last few years the government has increased the amount of tax returns that they randomly audit. Most of the time, when you receive an audit notice, you were randomly selected to have your taxes reviewed. You will more than likely just have to provide the government with any documents they request, and worst case scenario, possibly loose a days pay to attend a face to face meeting. The government has justified this new measure with the claim that more and more people are cheating on their taxes. In an effort to cut back on this they are auditing additional people each year in hopes to randomly catch a bad claim.
What Should I Do If The government Wants To Audit Me
If the government wants to audit your Tax return you should prepare to comply with their request. If it is a simple audit, as most are, you should make copies of all the documents they have requested and prepare to submit them by the time line the government provides. However, if the government tax return that is being audited states you owe a lot of additional money or are being questioned for fraud, you should immediately seek the help of a tax attorney.
How Long Should I Keep My government Tax Return And Supporting Documents
By law you are required to keep your government tax return documents for 7 years if you are an individual 10 years if you are a business. Certain professions may be required to keep the documents for a longer period of time. When you keep your tax return documents make sure that you keep all the records that are relevant to your return with the document. If you have claimed any type of deductions you must keep the supporting documentation. This way, in the event you are randomly selected for an audit, you will always be prepared. When the time line expires for your records make sure you shred them properly. Tax documents are the number one source of paperwork identity thieves look for to retrieve information.