IRS Compliance Center Audits
IRS Compliance Center Audits are conducted when a return is first received to ensure that all information matches what the IRS has on records. Information filed by third parties is keyed to your social security number and compared with the information on your return. If a mismatch is found, the taxpayer will receive a letter known as a CP 2000, which requests an explanation of why income items were not included on the return. In addition, all returns are checked by the Compliance Center to screen for mathematical errors and to make sure all of the proper schedules have been attached.
The IRS seeks to help taxpayers comply with their tax obligations voluntarily and timely. The articles and publications on this page contain research related to taxpayer compliance. Compliance measurement research, also known as the tax gap, examines how much tax is not paid voluntarily and timely. Another set of research looks at the causes of taxpayer compliance.
An IRS audit is a review/examination of an organization’s or individual’s accounts and financial information to ensure information is reported correctly according to the tax laws and to verify the reported amount of tax is correct.
Why am I being selected for an audit?
Selection for an audit does not always suggest there’s a problem. The IRS uses several different methods:
- Random selection and computer screening – sometimes returns are selected based solely on a statistical formula. We compare your tax return against “norms” for similar returns. We develop these “norms” from audits of a statistically valid random sample of returns, as part of the National Research Program the IRS conducts. The IRS uses this program to update return selection information.
- Related examinations – we may select your returns when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for audit.
If you have any questions or if we can further assist you, please contact our San Diego IRS audit attorneys today.
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