Feel like the IRS has all eyes on you?
Think of filing your taxes as going through security at an airport. Your tax return is you. The security checkpoint is the IRS. Just like you can be stopped while going through security, your tax return can be stopped by the IRS. With a security checkpoint, you’re either stopped because you were the lucky number of the hour or because something triggered suspicion. The same goes for your tax return and the next step is an IRS audit.
What is an audit?
An audit is simply an examination of the information you reported on the tax return you filed for a specific year. Contrary to popular belief, the IRS is not employed with millions of accountants checking each return that comes through their doors. In fact, much of the processing is computerized now. You can imagine how technology can be manipulated a bit by fraud accounts and identity theft. Audits are necessary to help stop that from occurring as well.
What triggers your return for an audit?
Just like at the airport security check, the IRS can stop a tax return randomly or for suspicious activity. Here is a list of the most common audit triggers we’ve come across: (more…)