I got a letter from the IRS. Does that mean that I am being audited?

That depends but in most cases the answer is no. In this age of computers, the IRS is generating more and more letters based on a computer matching information on your return to information reported to them by employers, bank, and other third parties. If the computer is not able to find an item on your return the computer will write you a nice letter requesting clarification of where the item is included in your return. Hopefully the item has been included in the return so it is just a simple letter back explaining where in the return you have included the item in question.

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