If you get an IRS audit notification in the mail, it might be easy to think that it’s not a big deal and just ignore it. After all, what’s the worst that could happen? The truth is there are serious consequences for ignoring an IRS audit—and those consequences can last for years.
Here are 3 reasons why you should not ignore that IRS Audit notice.
What Is An IRS Audit?
First things first, let’s define what an IRS audit is. An audit is when the Internal Revenue Service (IRS) examines your tax return to make sure you reported your income correctly and paid the right amount of taxes. It’s important to note that anyone who files a tax return can be audited—even if you don’t have any significant income or assets.
What Happens If You Ignore An Audit?
If you ignore an audit, it won’t go away. The IRS will keep sending notices until they receive a response or they deem that enough time has passed and they need to move on to other taxpayers who may owe them money. If you completely ignore the audit, then the IRS will issue a final notice with proposed changes based on their findings and assessment of your taxes due. This notice will include penalties and interest charges for late payment, which can quickly add up over time—not to mention additional fees for failing to respond to their requests in a timely manner.
Penalties Could Be Added On
If you ignore an audit notice from the IRS, penalties for non-compliance could be added on top of any tax debt already owed. This penalty starts at 5% per month and can go as high as 25%. Penalties for non-compliance will continue until compliance is achieved or a full payment is made. There are also additional penalties for filing false documents or providing false information during an audit—which include criminal charges in some cases—so it’s important to take this process seriously and respond accordingly when audited.
Collection Action Could Be Taken Against You
Tax Law Advocates has over a decade of experience in these types of cases. Many people have come to us in this situation and we understand that it is scary for any taxpayer dealing with the IRS. Thankfully, we often can help clients achieve a positive resolution.
Remember, ignoring an IRS audit can lead to collections action against you such as wage garnishment and bank levies—even if no taxes are eventually found due after the completion of your audit! These collection activities can be disruptive and embarrassing so it’s best to avoid them altogether by contacting us promptly when you receive your audit notice.
However, if you contact us immediately after receiving your audit notice, you may qualify for IRS tax debt forgiveness or the Fresh Start Program.
The bottom line is that ignoring an IRS audit creates additional problems and doesn’t solve any. If you do receive a notice that you are being audited, contact our team of experienced professionals. We understand how these processes work so that you can ensure your rights are protected throughout the process and comply with all necessary requirements in a timely fashion—for both your own peace of mind and wallet.
Get your free consultation and be free of tax debt today!
