NewsCovering Kentucky


Tax Experts Explain Identification Audits

Posted at 5:49 PM, Jan 14, 2019
and last updated 2019-01-14 17:49:21-05

MADISON COUNTY, Ky. (LEX 18) — A local tax preparation company said its experts have been answering a lot of questions about a letter some clients are receiving from the IRS about identification audits.

“And the word ‘audit’ is just like, wow! So everyone gets worried about the word ‘audit,'” said Maggie Kluesner, a senior accountant and tax preparer at Tax Wise in Richmond.

After filing their taxes, some people have gotten a letter in the mail from the IRS or State Revenue Department saying they need to complete steps for an identification audit. Kluesner says that most of the time, the letter is sent out because someone incorrectly used a child’s Social Security number.

“In this day and age, a lot of people are raising their grandchildren, their nieces, their nephews, and they’ve been there more than six months so they try to claim them on their taxes, but the parents will also try to claim them,” Kluesner said.

Officials have to verify who actually gets to claim the child. Another reason the letter could be sent is a case of identity theft.

“And this person’s already filed or it doesn’t match up something, so it throws up a red flag,” she said.

Tax experts say that if you get a letter, don’t let it stress you out. You’ll likely have to send a copy of your driver’s license and answer a few questions online. A hold will be put on your refund, but she says it is only until the audit is complete.

“They usually release it right after they get the identity proven,” said Kluesner.

Tax experts say the IRS will never call you and will only send letters, but it never hurts to verify that a letter is legitimate with a tax professional before sharing personal information.