The IRS is getting overly aggressive with their auditing process. Now, they are simply auditing by mail. Yesterday, I had the opportunity to interview IRS expert and author Dan Pilla. Dan is considered one of the foremost authorities on the IRS. In a recent article that he published he wrote:

“The correspondence audit is nothing more than a mail-order audit. The process involves the IRS mailing a letter notifying you that you’ve been selected for audit then asking that you provide by return mail certain documents and information to verify the questioned items in the return.

This all seems harmless enough. In fact, when properly handled, the correspondence audit is generally a more preferable way to handle an audit than the face-to-face examination.

That’s the good news. The problem is that most people simply do not know how to handle any kind of audit, correspondence audits included. Because of that, they end up paying more taxes than they owe. This is because we know that the IRS’s audit results are wrong 60% to 90% of the time, depending on the issue.”

You really need to know how to handle this in the event that you are one of the lucky ones. Remember, the Federal Government needs revenue and they are aggressively going after people for money that in many cases is not even owed.”

I would encourage you to listen to the audio from yesterday’s program. For a link to the article, click here.

Tags: Audit List, Bob Brooks, Dan Pilla, Deceptive Money, federal government, IRS, Prudent Money