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Showing posts with the label IRS letter

IRS Audit Triggers in 2026: Small Errors That Flag Returns

IRS Audit Triggers in 2026: Small Errors That Flag Returns IRS Audit Triggers in 2026: Small Errors That Flag Returns TL;DR Summary Most “audit triggers” in 2026 are automated mismatches, not in-person audits. Small filing errors can flag returns when IRS data doesn’t match third-party reports. Careful reconciliation and quick responses to IRS notices can reduce risk. Many taxpayers worry that a minor mistake will automatically lead to an IRS audit. In reality, most issues that feel like audits begin with automated systems comparing what you reported against information sent to the IRS by employers, banks, brokers, and payment platforms. In 2026, these automated checks remain one of the most common reasons tax returns are flagged. While that can lead to additional tax and interest if left unresolved, many cases are fixable when addressed early. What Changed in 2026 and Why It Matters The biggest factor in 2026 is not a single ne...

IRS Letter After 1099-K in 2025: What Gig Workers Must Do

IRS Letter After 1099-K: What Gig Workers Must Do in 2025 IRS Letter After 1099-K: What Gig Workers Must Do in 2025 TL;DR Summary An IRS letter after a 1099-K is usually triggered by income mismatches, not fraud. 1099-K amounts report gross payments, not your actual profit. Gig workers must respond on time with records showing business expenses and corrections. Many gig workers are surprised to receive an IRS letter after a 1099-K, especially if they already filed their taxes. The notice often suggests that income was underreported and proposes additional tax. In most cases, this does not mean you did anything wrong. It usually means the IRS matched your return against a 1099-K form and found a difference that needs clarification. What Is a 1099-K and Why the IRS Cares Form 1099-K reports the total amount of payments you received through payment platforms such as apps, marketplaces, or card processors. As of 2025, the IRS use...

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