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What happens when you get audited by the IRS?

I know it's supposed to be a bad thing but what exactly happens? What all do they do or look for? What happens if you don't own much and only work 1 job but don't make much? What could they possibly want from a person like that? I thought only people who own buinesses and such had to worry about that but I guess it can happen to everboy.

BTW I'm not being audited I'm just curious!

Answer Question
 
Anonymous

Asked by Anonymous at 10:55 PM on Jan. 25, 2011 in Money & Work

Answers (7)
  • It's mostly for businesses, but it can happen to individuals too. Our neighbor got audited last year because he claimed his kids and so did his ex, so they audited him, found out he got too much back and had to pay the IRS back.
    Samie8183

    Answer by Samie8183 at 11:13 PM on Jan. 25, 2011

  • If you get audited, they can freeze any bank account you have and take money out that you owe them
    leksismommy

    Answer by leksismommy at 11:24 PM on Jan. 25, 2011

  • Lots of things...if you are interested in it, you should take the basic tax course with H&R Block....or order a publication 17 from the website and read it. There is all kinds of stuff and it can all get very complicated. I would say mostly its from mistakes. If you do not have much income and do not do anything dishonest...do not worry about it. they can be very helpful too. I did a schedule C once a long time ago because we did a paper route on the side...I made a mistake..they set up a phone appointment and walked me through it. It was basically to get the paperwork correct and was really easy.
    Anonymous

    Answer by Anonymous at 11:41 PM on Jan. 25, 2011

  • You usually owe them money! IT SUCKS! We were just audited and owe 4000$. Needless to say there isn't much you can do about it so make sure you know who is doing your taxes is doing it well. If anything is wrong on it, they will come back at you with interest!
    MelisaVaughan

    Answer by MelisaVaughan at 12:39 AM on Jan. 26, 2011

  • Audits can happen to individuals. They used to be random, but with budget cuts, random audits are a thing of the past.

    Essentially, the IRS looks to make sure that you have the backup records for all of your income and deductions. This is why you need to save all of your records for seven years.
    rkoloms

    Answer by rkoloms at 6:19 AM on Jan. 26, 2011

  • They're not going to audit you unless there is something strange about your tax return. An usually high amount donated to charity, for example. They're going to want to see all your receipts, W-2 and other information to see whether your return is correct or not.
    HotMama330

    Answer by HotMama330 at 11:52 AM on Jan. 26, 2011

  • musicmom08

    Answer by musicmom08 at 10:01 PM on Feb. 6, 2011

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