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At Solvable, we care about your financial well-being and are here to help. Our research, articles and ratings, and assessments are based strict editorial integrity. Our company gets compensated by partners who appear on our website. Here is how we get compensated.
At Solvable, we care about your financial well-being and are here to help. Our research, articles and ratings, and assessments are based strict editorial integrity. Our company gets compensated by partners who appear on our website. Here is
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There are many misconceptions about tax audits. Some people think that only those who evade taxes have to undergo a tax audit. Others think that a tax audit means the IRS will investigate all of your finances and assets.
The fact is that the IRS conducts tax audits based on:
Their review of your return if they find discrepancies that they wish to examine
Random selection of a return by their computer analytical program
Related audits where somebody financially related to you, such as your business partner, was audited
A tax audit does not necessarily mean that you will have to face an IRS agent who will go through all your financial details. Audits can be as simple as sending the IRS certain documents that they requested.
How Does a Tax Audit Start?
When the IRS selects your return for an audit, they send you an audit notice. This notice has information on why they send you the audit notice and what they require you to do.
Depending upon what they want to investigate, the notice will tell you if you need to respond to them through mail or have an in-person interview with an IRS agent.
When the IRS sends you a tax audit notice, you have three options. You can:
Respond to the IRS yourself
Hire a professional tax service to work on your behalf
Take no action
What happens if you take no action?
The worst thing you can do is to take no action. When the IRS sends you an audit notice, they have their eyes on you. If you don’t respond, it will only make matters worse. Then, the IRS can demand the information and gather it on their own.
If you have a tax representative and he/she refuses to share your information with the IRS, then the IRS can gather the information, and the tax representative will be in violation of the Department of Treasury’s Regulations Governing Practice before the Internal Revue Service.
If you have concerns regarding the sharing of a certain document or information with the IRS, it is best to talk to the IRS about it and explain to them your concerns.
When you receive a notice, whether you are in compliance or not, it’s time to address the issue and resolve it.
How you can respond to the IRS yourself?
If you are confident that you can handle the IRS yourself, you can respond to them directly. If the IRS has only asked you for certain documents by mail, and if you are certain that there is no non-compliance and you have all documents to support your claims, then you can go ahead and send in your response to the IRS.
However, not all audits are that simple. Things can get complicated when:
Even if you have been in compliance, you do not have supporting documents to support your claim of your compliance.
You owe back taxes.
You evaded taxes knowingly or unknowingly.
In such cases, it’s best to take the help of a professional tax service. Also, if the IRS has requested an in-person interview with you, it’s better to have your tax representative with you.
How a tax service can assist you?
Your tax professional will help you to prepare the documents, guide you regarding the interview, and hold talks with the IRS on your behalf. If you are unsure about your financial details or don’t have certain documents, a tax professional or service will also help you gather documents.
Professionals such as tax attorneys and enrolled agents are knowledgeable about the tax laws, IRS rules, and the tax code. Along with that, they routinely carry out negotiations with the IRS. That is why it is important to have someone like that with you when dealing with the IRS.
What You Shouldn’t Do in an Audit
Avoiding simple mistakes can ease the process of an audit. The IRS acts professionally and also expects the same from the taxpayer under audit. Keeping these points in mind will help you to avoid audit potholes.
Sending incomplete records can complicate an audit and make it more time-consuming. Before you send in your reply to the IRS, prepare your documents carefully. The IRS needs a written proof of everything you disclose and have claimed in your tax return, so having proper records is essential.
In an in-person interview, never give more information than is asked. Be precise with your answers and have documented proof of all the claims you have made in your tax returns.
The IRS usually doesn’t go back beyond three years in an audit. Typically, if they find some major discrepancy that leads to owing a significant amount in back taxes, then they will go back until six years or more. Therefore, prepare until three years back if the IRS hasn’t specified which year’s returns they will be examining.
Read the notice carefully and thoroughly and take your time to reply. Do not send an acknowledgment letter if not asked. Take time to understand what action they want you to take and prepare your reply carefully. If in doubt, ask somebody (preferably a tax lawyer or a person who has undergone an audit) to double-check your response.
For How Long Does an Audit Last?
An audit may last for a week, a few weeks, or months. It depends on what the IRS wants to investigate and how deep they wish to dive.
Even though delays are inevitable in some cases, such as when a taxpayer may be away and requests more time to reply, it’s best to respond to the IRS audit as soon as possible.
However, if you feel that you need more time to respond, you can send in a written request for additional time. The IRS might grant a 30-day extension if they did not send you the ‘Notice of Deficiency.’ In the case you received that notice, the extension is not granted.
A tax audit might be bothersome, but it does not need to become a pain. With proper action taken in time, you can come out of a tax audit with ease. If you think you cannot handle the IRS yourself or even if you are in the middle of a complicated tax audit, you know that help is just a click away.
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We encourage all users to:
Shop around and compare costs, services, and reviews
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Ask questions directly to the provider before signing any agreements
Solvable is not a law firm and does not provide legal advice. If you’re working with an attorney or financial professional, we encourage you to speak with them about your specific situation, as they will be most familiar with your needs and the laws in your state.
Our goal is to make it easier for you to explore your options, but the decision is ultimately yours.
Personal Loans Advertiser Disclosure
The personal loan offers you see on Solvable are from companies or affiliates that may compensate us. This compensation may impact where offers appear on the site, including their order, prominence, or whether a lender is featured. Solvable does not include every personal loan provider or all available offers in the marketplace.
Loan approval and terms are determined solely by the lender. You should carefully review each provider’s terms and conditions to find the option that best fits your financial situation. We make reasonable efforts to keep information up to date, but rates, fees, and terms are not guaranteed and may change at the discretion of each provider. There is no guarantee you will be approved for credit or that you will qualify for the advertised rates or terms.
Be sure to:
Review actual loan terms directly with the lender
Ask about origination fees, which can typically be around 1%
Understand all costs, repayment terms, and requirements
Know that some lenders may require an existing account or specific credit profile for approval
Loan amounts typically range from $1,000 to $35,000, but the amount you qualify for, and the terms offered, will depend on your state, credit history, financial situation, and the lender’s underwriting criteria.
Credit Card Advertiser Disclosure
Some of the credit card offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may influence how and where products appear on our site, including their order or whether they’re labeled as “featured.” Solvable does not include all credit card companies or offers available in the marketplace.
Credit card approval is determined by the individual issuer. We recommend reviewing each provider’s terms and conditions to ensure the card fits your financial needs.
We strive to provide accurate information, but rates, fees, and terms are not guaranteed and may change at any time at the discretion of the issuer. Approval is not guaranteed, and advertised rates or rewards may not be available to all applicants.
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Information is provided by the card issuer and may not reflect real-time updates
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Business Loans Advertiser Disclosure
Some of the business loan offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may influence how and where products appear on our site, including their order or whether a lender is featured. Solvable does not include all business loan providers or offers available in the marketplace.
Business loans are intended strictly for commercial purposes. Any funds or assets obtained through these loans must be used for business-related activities—not for personal, family, or household use.
Most business funding partners in our network do not require collateral, but depending on your needs and the lender’s underwriting criteria, you may be offered other financial products. Traditional bank and SBA loans often require collateral and have more extensive approval processes.
It’s important to understand:
There is no one-size-fits-all business loan solution
Offers and terms will vary depending on your business’s financial profile
Underwriting criteria, approval, and terms are determined solely by each lender
Rates, fees, and availability are subject to change and are not guaranteed
Not all products are available in all states or for all types of businesses
We encourage you to review each provider’s terms and consult with a financial advisor or tax professional before accepting any loan offer.
Student Loan Refinancing Advertiser Disclosure
Student loan refinancing offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may impact where and how offers appear on our site, including the order in which they appear or whether a lender is featured. Solvable does not include all student loan companies or all available refinancing options in the marketplace.
Pursuant to agreements with our partners and affiliates, Solvable may receive updates about the status of your application, including—when available—loan amounts, application status, or final decisions. Each partner’s use of your information is governed by their own privacy policy, which we encourage you to review directly.
Refinancing may help reduce your monthly payments or interest rate, but potential savings will vary depending on the interest rate, balance, and remaining repayment term of your existing loans. In some cases, refinancing may result in a longer repayment term and higher total repayment over the life of the loan—even if monthly payments are lower.
Please keep in mind:
Variable rates may fluctuate over time based on market indices like SOFR, Prime, or another benchmark rate, and may vary based on borrower qualifications and whether a co-signer is used.
Fixed interest rates may also depend on term length, credit profile, or presence of a co-signer.
All terms, rates, and product availability are subject to change at the lender’s discretion and may not be available in all states or for all types of loans.
Due to federal lending regulations, lenders are required to provide potential borrowers with certain disclosures, including an Application Disclosure and an Approval Disclosure, during the application process. Solvable is not a lender or creditor and does not originate or fund loans, nor can we alter or offer credit terms. Only the lender you apply with can provide specific loan details and required disclosures.
Please Note:
Certain federal and private loans may not be eligible for consolidation or refinancing.
Some refinancing options may eliminate borrower benefits (e.g., grace periods, income-driven repayment plans, or federal loan forgiveness eligibility).
Loans in default typically cannot be refinanced until you complete a qualifying repayment program.
Be wary of providers requesting upfront fees for student loan services.
Other financial options—like personal loans, debt relief, or consolidation—may also be worth exploring. Consult with a licensed financial or tax professional to determine what’s best for your situation.
Home Insurance Advertiser Disclosure
Home insurance offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may impact how and where offers appear on our site, including whether a company is featured or the order in which it is listed. Solvable does not include all home insurance providers or all offers available in the marketplace.
Each provider sets its own underwriting criteria, and coverage availability may vary based on the age, condition, location, and value of the home. Policy terms, limits, exclusions, and pricing are determined by the insurer and may change at any time.
Solvable is not a licensed insurance agency and does not issue policies or offer insurance advice. We recommend that users:
Compare quotes from multiple home insurance providers
Review coverage options, exclusions, and deductibles carefully
Confirm all terms directly with the insurer
Speak with a licensed insurance agent if you have questions about your specific needs
Home Services Advertiser Disclosure
Home service offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may affect how and where offers appear on our site, including their placement, order, or whether a provider is featured. Solvable does not include all home service companies or all available options in the marketplace.
Services may include HVAC repair, plumbing, electrical work, home cleaning, appliance maintenance, and other residential needs. Providers set their own pricing, availability, and service standards.
Solvable does not provide home services directly and does not guarantee the quality or reliability of any third-party service. We recommend that consumers:
Compare multiple providers and read recent customer reviews
Ask about service guarantees, pricing structures, and insurance or licensing where applicable
Confirm all details directly with the provider before scheduling any service
Important Notice About Solvable’s Role
Solvable is an online lead generation platform that allows consumers to compare rates, terms, and offers from a network of lenders and service providers. We do not offer, extend, or fund any loans. Instead, we connect users with lenders who may be able to help based on the information submitted through our forms.
Submitting an inquiry on Solvable is not a loan application. To move forward, you must speak directly with the lender, review their terms, and complete any application materials they require. Lenders in our network may not offer the lowest available rates, so we encourage you to compare quotes from multiple sources—including banks, credit unions, and other financial institutions—to ensure you’re getting the best deal.
Solvable does not guarantee loan approval, interest rates, or potential savings. Any estimated savings or quotes are for informational purposes only and may not reflect your actual terms. Final rates, loan amounts, and eligibility are determined solely by the lender based on their underwriting criteria, which Solvable does not control or have access to.
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