No full information of income taxes ,is a reason to auditing by Irs
Q.I really don't know any reasons the IRS is auditing to me. I just got a letter from the IRS. They reviewed my 1993 income tax and accordingto them I owed the $1100, this includes a penalty. It seems like they are right, but does this mean that they are going to audit all my previous income taxes? Any informations or experiences to help me
A.No, it doesn't mean that your previous returns will be audited. For your own peace of mind, it might be a good idea to go back an review your old returns and file amended returns if necessary. It could save you any interest accumulating in your account, due to underreporting, and if there are any penalties, you might be able to seek relief if there is an appropriate reason. The fact that IRS has billed you for unpaid taxes does not necessarily mean that a liability exists. IRS gets 1099 forms for all of your income. If you overlooked some self-employment income (for instance) the likelihood is that you overlooked business expenses. Based on the information IRS has, they have drawn a conclusion. It's up to you to determine if they are correct in their assessments. CHECK IT OUT before you sign, or pay, for anything!!! From what you describe it sounds like the IRS most likely picked up a discrepancy between what you reported as income and what those that paid you reported as being paid. Assuming there's not a similar problem in other open years, most likely this is the end of the problem. If there is a similar problem in 1994, expect to get a letter from them next year. Assuming that you filed your returns in a timely manner and that fraud isn't involved with your returns, the only years that should be open are 1992, 1993 and 1994.
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