IRS Audits While Filing

If you receive notice for an IRS Audit, and are about to file your taxes for this year, it is strongly recommended that you wait. While this may create some tension and stress, getting through this time can be realtively easy if you know your rights and obligations. Filing a new return can result in that return being audited as well if your case is still open. For right now, file for an automatic extension which gives you until August 15th to file your new return. The automatic extension form 4868 needs to be sent in by April 15th however. To avoid further IRS audit issues, pay all taxes due by April 15th.

Once you have filed for the extension, and the deadline arrives, it is possible that you IRS Audit will still open. If the IRS audit is still going on in August and you are near your automatic extension deadline, file for another extension. This can be done using IRS Form 2688. This form will need to be sent to the IRS no later than August 15th. The second extension will then give you until October 15th to file your return if the extension is granted. Hopefully, the case will be handled and closed out by your the time second extension deadline rolls around.

But what happens if the second deadline of October is quickly approaching and the case is still open? In this case, don’t file your taxes until after the audit is complete. As long as you are not defrauding the IRS and are paying any applicable taxes by deadline, you will not be charged penalties or interest. If you find that you owe more money than what you sent on April 15th , send that in by the extension deadline of October 15th and write a note to apply the monies to your un-filed taxes for the 2008 year, as an example. If the Auditor asks you about your tax return for the current year, let them know that you are not ready to file. An auditor can not make you file your tax return.

The key to any IRS audit is to be educated and don’t be afraid. As long as you are paying applicable taxes and keeping the IRS aware of your status, you should be fine. If you feel that you are over your head, contact an IRS attorney and/or a tax advisor. Either way, the key step is to stay informed of your obligation as well as what an auditor can and can not do.