Are you in trouble if you get audited?

The most common penalty imposed on taxpayers following an audit is the 20\% accuracy-related penalty, but the IRS can also assess civil fraud penalties and recommend criminal prosecution.

What happens if you get audited by the IRS and fail?

You must pay overdue taxes after 21 days of an audit. If you fail to do so, you will be charged an additional penalty of 0.5\% per month for each month you are late.

Can IRS send you to jail?

But, failing to pay your taxes won’t actually put you in jail. In fact, the IRS cannot send you to jail, or file criminal charges against you, for failing to pay your taxes. This is not a criminal act and will never put you in jail. Instead, it is a notice that you must pay back your unpaid taxes and amend your return.

How long does it take to get your refund after an audit?

The estimated time frame for receiving a refund after sending in audit documents is approximately 4-8 Weeks.

What does it mean to be found guilty during a tax audit?

If the IRS has found you “guilty” during a tax audit, this means that you owe additional funds on top of what has already been paid as part of your previous tax return.

What happens if you get audited by the IRS?

Common charges brought by the IRS following audits include filing a false return, tax evasion, failing to file a return, and intentionally failing to pay estimated taxes or keep records. IRS agents seeking to start a criminal investigation must follow strict procedures and recommend prosecution to the U.S. Department of Justice Tax Division.

Does an audit mean you will owe more money?

An audit is frightening no matter what, but it doesn’t have to be inscrutable. And it doesn’t always mean you will owe more money. There is, believe it or not, a method to the madness. An income tax audit is an examination of a tax return.

What happens if I disagree with the results of an audit?

If you disagree with the results of an audit, you can ask the IRS to review its findings. If the IRS found that you owe $25,000 or less in taxes, penalties, and interest, you may file an appeal using IRS Form 12203. To contest a debt of more than $25,000, you must file a formal letter of protest with the IRS. Have More Questions?