What is a "blind" audit ??

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Paragon2

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I recently got a surprise in the mail. A bill from the IRS saying I owed ALOT of $$...like over half of my net income for '07 amd '08!! I was never audited or recieved a requestto be audited.
I contacted the IRS and was told it was a "blind" audit and they would send me a copy of the audit and contact information if I choose to dispute it.
Has anyone ever heard of this?? It is frustrating they can do this with ZERO information....and now the burdon of proof is on me. :confused:
 
This term was new to me too. Upon researching it, it apparently is simply random auditing. The intent is for the IRS to learn how to spot nessessary and/or unnecessary audits in the future.

You do not necessarily owe the amount they say. You do need to support with documentation any areas that they claim to be different than what you had reported.

If this becomes more complicated than you can handle yourself, you may need to visit a CPA.
 
Sometimes the IRS uses that term to refer an audit instigated by a snitch.

The IRS could have been contacted by a disgruntled ex-spouse, former employee, angry friend, or jealous relative.

The list could continue, but the theme is the same.

They snitch you out, the IRS turns up irregularities and you owe money to the IRS.

The ex-spouse, angry friend, disgruntled employee gets paid!!

The IRS gives them 10-20% of what they collect from you.
 
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