Las auditorias no siempre significan que existe alguna irregularidad en la declaración de contribuyente.
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The most common error in tax declaration that the IRS could initiate an investigation for in the United States

Avoiding mistakes in tax filing is key to not drawing the IRS's attention. In this article we tell you about one of the most common, and easily preventable.

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The tax season has already begun in the United States, and the Internal Revenue Service (IRS) is processing returns and issuing refunds. However, a common mistake in the declaration could attract the attention of the IRS and even lead to an audit. This oversight, which many taxpayers make unknowingly, could result in a tax investigation.

In this context, using rounded figures or approximations in tax returns is a practice that may raise suspicions at the IRS. The amounts reported in forms like the 1040 rarely are exact multiples of 100, so an excessively rounded amount could be interpreted as an inaccuracy or an evasion attempt.

Therefore, it is advisable to round only to the nearest dollar. For example, if a professional declares the purchase of equipment for $495.25, he should report it as $495 and not $500. An exact number like $500 could prompt the IRS to request additional proof.

What to do if the IRS initiates an audit

If the IRS sends an audit notification, it is crucial to act quickly and follow these steps:

  • Thoroughly read the letter to identify the reason for the audit.

  • Gather all documentation that supports the reported information.

  • Consult with an accountant or tax advisor for guidance.

  • Respond within the specified deadline to avoid additional penalties.

How long can the IRS audit a tax return

Generally, the IRS audits returns from the last three years, but if significant errors are detected, it can extend the review up to six years back. Most audits focus on returns from the last two years.

If the audit is not resolved within the legally established time, the taxpayer can request an extension of the statute of limitations, allowing for more documentation to be submitted or appealing the results.

Other ways the IRS can select individuals for an audit

According to the information on the official IRS site, there are other methods by which audits can be carried out on taxpayers:

Random selection

This is the main procedure for selecting individuals audited by the IRS. To carry out the process, the agency relies on a selection made by computer and with the help of statistical formulas under the National Research Program.

Reviews based on connections

According to the IRS, when it is found that a taxpayer has financial ties to another person or company under audit or review, they become a potential subject for review.

Maintaining accurate records and avoiding common errors can help prevent issues with the IRS.

*This article has been automatically translated using artificial intelligence