Don’t Fear IRS Audits – Pt 1

Are you afraid the IRS might audit you?
I was once selected for a “spot audit.” The IRS wanted me to verify receipts for some of our charitable giving. Since I had the paperwork to back my claims, I had nothing to fear.

Years ago, a neighbor wrote a series of letters to the White House, and he was subsequently audited by the IRS. The IRS claimed he owed an additional $5. It was a waste of time and money, but punitive audits were happening during that time.

An audit is simply a closer inspection of your tax return. If you were honest, you should have a good conscience and nothing to fear. Audit rates are lower than most people think, and may drop even more due to cuts at the IRS. You’ll never experience a surprise audit. Notification is primarily through mail. Failure to respond within a certain time period could result in penalty charges or additional interest. So, acknowledge any notifications. Earlier filings can be flagged, but typically no more than three years for personal matters and six years for businesses. However, most people end up paying more after being audited and correcting their filing.

So remember, an audit is no cause for panic. Keep accurate records, use tax software, or work with a qualified CPA. In Romans 13, we’re instructed to be subject to our governing authorities. “Pay to all what is owed to them: taxes to whom taxes are owed, revenue to whom revenue is owed, respect to whom respect is owed, and honor to whom honor is owed.” (Romans 13:7)

And if you’re struggling with credit card debt, Christian Credit Counselors can help. They’ll create a debt management plan specifically for you. For more information, visit crown.org/ccc.