Many tax filers worry that the IRS is going to call on them to be audited. Those tax filers may be stressing out over nothing. The IRS actually only audits a very small percentage of individual tax returns. A computer-based model runs the selection process and goes by a certain set of standards. If the figures on your tax return are largely different from the standards that the computer is using, that would increase your chances of being audited greatly.
The IRS groups tax returns together and from there they choose which ones will be audited. Unfortunately, the IRS does not give information on the actual details that they use to create these groupings. If they did give out such information, there would be many people trying to outwit the system.
Red flags are set off at the IRS when an abnormally low income or large amounts of deductions are reported. You may not be audited but the IRS may contact you for an explanation. Depending on the answers that are given, an audit may ensue.
No one likes to be audited but just because you are, doesn't mean things are going to turn out for the worse. As long as you are honest and double check your figures the first time around, you should be fine.
Be aware though that Congress has given the IRS a bigger budget for conducting audits. It was necessary because hundreds of billions of dollars have been lost by those who cheat on their taxes.
Labels: audit, IRS, tax returns, taxes
0 Comments:
Post a Comment
<< Home