The IRS performs matching functions to reconcile information reported on Forms 1099 and W-2 with information reported on the taxpayer’s return.
If income reported by the taxpayer does not meet or exceed amounts reported to the IRS, the taxpayer will receive either a bill for tax on the difference or an audit notice.
A letter from the IRS doesn't necessarily mean you are being audited... It may just mean there is need for clarification on some aspect of your tax return.
In any event, DON'T PANIC! Call us for assistance!
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