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How to handle a tax error

Georgia residents may believe that their tax returns won't be audited after they receive a refund check. However, this is not necessarily the case as the IRS has up to three years to audit most returns. Those who receive a refund that seems too large may wish to keep the check and mention the possible error to the government. This is because the IRS may ask for the money back plus interest if a refund was mistakenly issued.

The IRS will send a notice a few days after the refund check has arrived. If the refund is smaller than expected, it could be because of a math error or a penalty was applied. Refunds may be lower than expected if a taxpayer takes a deduction that he or she was not entitled to.

A taxpayer spends a refund sent in error could spend time in jail. This is what happened to one man who had $110,000 deposited into a bank account that once belonged to another person. The money was sent to him because the woman it was intended for gave the IRS her old bank account number that had been reassigned. As a general rule, taxpayers should be ready to support any deductions taken if the IRS does audit their returns.

An error on a tax return could lead to an audit, which could lead to potentially serious consequences. For instance, a person may be subject to a tax lien or a wage garnishment. People who are dealing with an IRS issue may talk with an attorney who may be able to work with the government to reach a favorable resolution.

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