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Do NYS audit results get sent to IRS?

  • 1.  Do NYS audit results get sent to IRS?

    Posted 8 days ago
    Hi All,
    Happy Tax Season!
    I know that IRS audit results are shared with NYS Dept of Tax.  When NYS does a correspondence audit on itemized deductions and assesses additional tax, do they share that information with the IRS?
    Thank you, Sandy

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    Sandra Johnson CPA
    SANDRA G. JOHNSON, CPA
    Bellmore NY
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  • 2.  RE: Do NYS audit results get sent to IRS?

    Posted 7 days ago
    I have been told “maybe”. It is not automatic. It’s case by case.

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    Donald Ingram
    CPA
    DONALD INGRAM, CPA
    Woodbury NY
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  • 3.  RE: Do NYS audit results get sent to IRS?

    Posted 6 days ago

    Sandy:

    The last time NCCPAP visited Albany (about a year and a half ago) we brought this very issue to the Tax Department.   Often, these correspondence audits result in such little additional tax, the client would pay us more to respond than the actual tax would be.   Therefore, the client just pays the tax instead.

    However, if these results were communicated to the IRS, of course the tax ramifications would be more severe and a different decision would have to be made.

    Thus, we posed this question to the Tax Department.   They were crystal clear on their answer.   When NY audits a return, and there is an adjustment to INCOME (to Mark Stone's point) they automatically communicate the result to the IRS.   However, when NY has an adjustment to New York State Itemized Deductions, they DO NOT communicate that to the IRS.

    All of us in the room that day were surprised by that, but it was a pleasant surprise!

    Hope that helps.



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    Mark Stewart
    FELDSTEIN & STEWART, LLP CPAs
    New City NY
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  • 4.  RE: Do NYS audit results get sent to IRS?

    Posted 7 days ago
    I have only seen one instance where a New York State sales tax audit with an increase in gross sales has been reported to the IRS.

    Mark L. Stone, CPA, MST

    Managing Partner/member

     

    Sales Tax Defense LLC

    673 Deer Park Ave

    Dix Hills, NY  11746

     

    (631) 491-1500 ext 11 :phone

    (631) 491-1515 :fax

    mstone@SalesTaxDefense.com

    www.SalesTaxDefense.com






  • 5.  RE: Do NYS audit results get sent to IRS?

    Posted 7 days ago
    Thank you for the responses.

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    Sandra Johnson CPA
    SANDRA G. JOHNSON, CPA
    Bellmore NY
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  • 6.  RE: Do NYS audit results get sent to IRS?

    Posted 7 days ago
    Sandra,
    NYS does have a procedure to report audit changes to the IRS.  I know in the past that there were thresholds involved, and the information once referred is not always acted upon.

    Brian Gordon

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    Brian Gordon CPA
    President
    State Tax Audit Representation
    626 RXR Plaza
    Uniondale, NY 11556
    516-510-6041
    bgordon@statetaxauditrep.com
    www.StateTaxAuditRep.com
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