6/3/2020
What You Need to Know About Being Audited | Henry Comte Valasquez | Leadership
a What You Need to Know About Being Audited by Henry Comte Valasquez | Jun 3, 2020 | Henry Comte Velasquez, Leadership
When most people hear the word audit they immediately feel fear and confusion. The images that have been cast by Hollywood and the media always attach a negative connotation to the concept. Very few people, however, actually know what an audit is. Sometimes it’s as simple as a paperwork request, but tax audits often happen years after the return in question, so it can be hard to nd all of the necessary receipts and documentation required. Contrary to popular belief, an audit does not immediately imply any criminal activity on your part. There are di erent types and some can even be completed through the mail. Sometimes the reason for an audit can be completely random, generated by an algorithm designed to choose a small percentage of tax returns per year. Sometimes there’s a ag generated based on your tax return compared with the norm for your demographics. These might include abnormal business deductions or unusual income. There are three types of audits, ranging in severity. A correspondence audit is the least stressful and can often be corrected through correspondence. The reason for this low-level audit is usually because of a routine error, such as missing documentation or a mathematical error. A slightly more in-depth audit is called an o ce examination audit. These occur when your deductions and/or reported income are called into question and need to be veri ed. https://henrycomtevelasquez.org/what-you-need-to-know-about-being-audited/
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