IRS - Refund Status states Notice on the way, What does this mean?

Question

I got this message when checking the status of my 2006 refund:

We have received your tax return and it is being reviewed. You will receive a notice from us requesting additional information from you. When you receive the notice, please provide the requested information within 30 days. You may not receive all or a part of your refund until we receive and review the information we requested from you. If you need more information after you receive our notice, call the number on the notice.

What does this mean, what do they want?

Answer 1

This is called "Revenue Protection" procedures. (Yes, this is real). It means the IRS has questions about all or part of your refund. Most often, this is caused by a claim for EIC over $2500 when there is questions as to your eligibility. Reasons for this include that someone tried to claim the same children in a prior tax year or even in the current tax year. Or the IRS sees a suspicious pattern.

If you are entitled to a refund and your claim is legit, the only way to make your refund come is to answer and return the questionnaire or letter as quickly as you get it.

Tax Advisor

Answer 2

It may or may not be a big deal. IRS some time randomly select people to audit certain items. Unless there is an obvious red flag, like you made $10000 last year and gave $3000 to church at the same time have 2 dependents, then they will do a full-scale audit. Most of the time, it is to check on receipts and other supporting documents.

As long as you have file everything truthfully, you have nothing to worry about.

Best wishes.

Answer 3

This means they plan to audit you and they want you to provide them with your records.

Most llikely red flags were thrown in the federal computers and they suspect you of tax evasion. If i was you I would try and hide for a while and pray it goes away.

Answer 4

Sounds like you are being audited from the IRS. Call the IRS and ask them what is going on. GL