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Please note that filing a timely tax return for 2023 in the next several months {4/15/24 to 10/15/24} which is accepted as filed and claims for refund are paid at claimed values, are still subject to systemic and unique audit processes. I encourage you to retain qualified accountants, CPA's or return preparers to guide you in claiming this credit if you have doubts of eligibility.
The IRS has a routine cyclical audit process which is very efficient, using big data and AI screening with complements of couple thousand tax examiners reviewing detected cases from July to June of every year. The business process is presently wrapping up tax year 2021 reviews where the statute of limitation on proposing additional assessments for timely filed returns is still open until 4/15/2025.
Dealerships / manufacturers will send bulk sales data according the guidance issued subsequent to the passing of the IRA on Jan 15th 2024 for sales occurring in 2023. This information will simplify the "Under Reporter Analysis" process in a matter of weeks, fall out reports will be generated in batches based on the issues at hand, [wages, interest, NEC, MISC, 1099-K, etc] and the examiners would further screen the fall outs for anomalies, barring any problems, initial inquiry letters such as CP2501 could be issued or proposals of change based on findings could go out as well CP2000. In cases where additional taxes are substantially large, substantial understatement, accuracy related and fraud penalties could be assessed, these are substantial in cost, along with adjustments to late filing penalties, failure to pay penalties and of course the ever present interest will be due.
My personal career started doing this type of work until I moved up the ladder of duties & responsibilities before retiring, I've seen the worst of cases that have rolled through this process and the mess it can make in an individual's life.
The IRS has a routine cyclical audit process which is very efficient, using big data and AI screening with complements of couple thousand tax examiners reviewing detected cases from July to June of every year. The business process is presently wrapping up tax year 2021 reviews where the statute of limitation on proposing additional assessments for timely filed returns is still open until 4/15/2025.
Dealerships / manufacturers will send bulk sales data according the guidance issued subsequent to the passing of the IRA on Jan 15th 2024 for sales occurring in 2023. This information will simplify the "Under Reporter Analysis" process in a matter of weeks, fall out reports will be generated in batches based on the issues at hand, [wages, interest, NEC, MISC, 1099-K, etc] and the examiners would further screen the fall outs for anomalies, barring any problems, initial inquiry letters such as CP2501 could be issued or proposals of change based on findings could go out as well CP2000. In cases where additional taxes are substantially large, substantial understatement, accuracy related and fraud penalties could be assessed, these are substantial in cost, along with adjustments to late filing penalties, failure to pay penalties and of course the ever present interest will be due.
My personal career started doing this type of work until I moved up the ladder of duties & responsibilities before retiring, I've seen the worst of cases that have rolled through this process and the mess it can make in an individual's life.
