Question

what does it mean to be \audited\? explain. what should you do if you are unable to file or pay your taxes by the deadline? if you do not file or pay your taxes on time, what are three of the possible actions the irs might take?

Explanation:

1. Being "audited" means a review of your financial information (such as tax - related records) by an authorized entity (like the IRS) to verify accuracy and compliance with laws and regulations.
2. If unable to file or pay taxes by the deadline, you can request an extension to file (Form 4868 for individual income taxes in the US). If you can't pay, you may set up a payment plan with the IRS, request a temporary delay in collection, or explore other options like an offer in compromise depending on your situation.
3. If you don't file or pay on time, the IRS might assess penalties and interest, issue a tax lien to secure its claim on your property, or levy your assets (such as bank accounts or wages).

Answer:

1. Being audited is a review of financial info for accuracy and compliance.
2. Request an extension to file; set up a payment plan if can't pay.
3. Assess penalties and interest; issue a tax lien; levy assets.