TL;DR New Jersey residency audits determine if you should be taxed as a resident on all worldwide income Residency depends on domicile, permanent home, and time spent in the state (183+ days rule) You can still be taxed as a statutory resident even if you live elsewhere Common triggers include filing as a nonresident while […]
Tax Audits
Will Filing Past Due Returns Trigger an IRS Audit?
Do you have unfiled tax returns? You’ve probably had to pay tax penalties and interest because of late filings, and you may be wondering what to do next to get back in good standing with the IRS. But will filing those old tax returns trigger an IRS audit? This is a fear many taxpayers share. […]
Statute of Limitations for New Jersey Tax Audits
TL;DR New Jersey can audit state returns, and the typical audit statute of limitations is 4 years (with some exceptions), but the time limit may not apply if you did not file, filed fraudulently, or failed to report federal changes. Audits can be triggered by unusual return items, large refunds or credits, high tax-exempt sales, […]
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 […]
