Does the IRS plan to audit telephone tax refund requests?
The IRS expects to treat telephone tax refund requests in a manner similar to other tax returns. In general, the IRS accepts most federal tax returns as filed. However, to make sure taxpayers are following the law, the agency examines or audits some returns. Returns are audited for a variety of reasons, and most are chosen by computerized screening. In case of audit, what records should businesses and tax-exempt organizations keep? If you use the estimation formula, the IRS suggests that you keep the following records: • Copies of your phone bills dated in April and September 2006, • Your business-related telephone expenses for the 41 months for which the refund is available (March 2003 through July 2006), and • Documentation that confirms the number of employees during the pay period that included June 12, 2006, as reported on Line 1, Form 941 (Employer’s Quarterly Federal Tax Return) for the second quarter of 2006. If you base your refund request on the actual amount of tax paid, kee
