IRS audit shares exam results with states

[Vityaba]

Does anyone know for sure if the IRS shares exam results with the Illinois Department of Revenue,  and, if yes, how long does it take till IDoR sends a notice to the tax payer?

Thank you

[ILLMAS]

A big YES for IL, give it 1 to 1.5 years, best thing to do is to amend right away. 

[Vityaba]

Thank you ILLMAS. I thought so but wanted to hear that from someone who has actually experienced it. 

[ILLMAS]

For an individual return, the taxpayer will get a notice with the adjustment, for a business return, they'll want to do an audit.

[SaraEA]

CT audits almost every EITC return (the state EITC is 1/3 the federal amount).  They want EVERYTHING: birth certificates, proof of address, business receipts, etc.  Some of our Sch C clients who had tough years don't respond because they don't want to copy 10,000 receipts.  At a tax authority liaison meeting I asked if the state shares the results of their EITC audits with the feds.  One state tax guy said no, but about 15 minutes later when we were on a different subject and they were winding up another state guy resurrected the question and responded with bifurcated gobbleygook.  I came away with the impression that they don't want us to know.  My hunch is that they indeed share (and the IRS loves that the states are doing the work they don't have the resources to do).