The IRS isn’t the only government entity that audits your tax return. The New Jersey Division of Taxation could opt to audit your state return, and the process can be equally stressful and complicated. The statute of limitations for a state tax audit is four years instead of the three years that the IRS typically […]
Tax Audits
What Triggers a New Jersey Residency Audit?
The goal of a New Jersey residency audit is to determine whether you are accurately filing as a resident or nonresident of the state. If you are a resident, you are subject to state taxation on all of your worldwide income. In other words, if you own a rental property in the UK or take […]
The Four Types Of Tax Audits Explained
Although everyone dreads the prospect of a tax audit, they’re a rare occurrence. In 2018, the IRS audited an estimated 1 million returns, which is only 0.5% of all returns filed the year before. Situations that can trigger a tax audit include: Miscalculations on any of your personal or business tax return Claiming a high […]
