Will IRS federal audit follow state tax audit? Anxious about dual audits
Just got notification of a state tax audit and now im freaking out about whether the feds will come after me too. Anyone dealt with this before? State is looking at my business deductions from 2022.
14 comments
Join the conversation
Marcelle Drum
Tax professional here. State and federal audits aren't automatically linked, but they can trigger each other. States and IRS do share information, but they don't always act on it. If the state finds significant issues, they might report to the IRS. Focus on gathering all your documentation now - bank statements, receipts, and business records. Better to be prepared for both scenarios.
0 coins
Collins Angel
•thx for explaining! Do you know how long I should keep everything ready? Like whats the timeline on these things?
0 coins
Marcelle Drum
•Keep records for at least 7 years. State audits usually take 3-6 months, IRS can take longer if they decide to look into it.
0 coins
Tate Jensen
Hey everyone! I actually used taxr.ai for my audit situation and it was super helpful. It costs $1 but it analyzes your transcripts and tells you exactly what's happening and what to expect. Saved me tons of anxiety and guesswork. Check it out: https://taxr.ai
0 coins
Adaline Wong
•Sounds interesting. How exactly does it work? Does it just read your transcript or does it do more?
0 coins
Tate Jensen
•It does way more! It looks at your whole tax situation, explains audit triggers, and even suggests what documents you need. Literally saved my butt during my audit 🙌
0 coins
Adaline Wong
•OMG just tried it and its actually amazing?! Why isn't everyone using this? 🤯 The analysis was so detailed!
0 coins
Gabriel Ruiz
Been there done that 🙄 Had CA audit me in 2021 and no federal audit followed. ur probably fine tbh
0 coins
Misterclamation Skyblue
Bruh im in the same boat rn. NY state breathing down my neck but federal staying quiet so far lol
0 coins
Collins Angel
•how long has ur audit been going on?
0 coins
Misterclamation Skyblue
•bout 2 months now. its a clown show fr fr 🤡
0 coins
Peyton Clarke
Whatever you do DONT IGNORE THE STATE AUDIT. My cousin did that and ended up getting hit by both state and fed. Major L
0 coins
Vince Eh
started w/ state audit last year, ended up getting fedz involved bc i had unreported crypto gains they found. RIP my savings 💀
0 coins
Sophia Gabriel
•oof size: large
0 coins