Will a State Tax Audit Trigger a Federal IRS Audit?

Tax professional here - State and federal audits aren't automatically linked, but they do share information. If your state finds significant discrepancies, they may notify the IRS. However, the IRS decides independently whether to conduct their own audit. The best approach is to be thorough and accurate with your state audit documentation, as this could help prevent federal scrutiny.

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been thru both state and federal audits...trust me its not fun lol. Get everything organized now just in case 👀

Depends on what they find tbh. My friend got audited by NY state and nothing happened with federal. But def keep good records!

ur probably fine fam. just dont ignore the state audit or ur definitely asking for trouble 💯

anybody know how long these state audits usually take? im in the same boat rn

I went through this exact situation a few years ago! State audit doesn't automatically mean federal will follow, but there is some information sharing between agencies. The key is to handle your state audit professionally and thoroughly - keep detailed records, respond promptly to requests, and be completely honest. In my case, the state audit found a small error in my favor and the IRS never got involved. Don't panic, but definitely take it seriously and consider getting professional help if the amounts are significant.

Don't stress too much! I work in tax compliance and can tell you that state audits don't automatically trigger federal ones. The IRS has their own selection criteria and timeline. That said, if your state finds significant issues (especially underreported income), they might share that info with the feds. My advice: cooperate fully with the state audit, keep meticulous records, and if anything major comes up, consider hiring a tax pro who can represent you with both agencies. Most state audits are routine and result in minor adjustments or no changes at all.

I'm going through something similar right now and it's definitely nerve-wracking! From what I've researched and heard from others, state and federal audits operate independently. The IRS has its own selection algorithms and risk assessment criteria. While there can be information sharing between agencies, it's not automatic. Focus on handling your state audit properly - gather all your documentation, respond to their requests promptly, and be transparent. Most state audits are resolved without major issues, and even if they find something, it doesn't guarantee the IRS will take action. Try not to let the anxiety consume you - just be prepared and professional in your responses.