Nobody files their taxes with the intent of triggering an IRS audit. And your chances of being audited are very slim. In fact, less than 2% of all tax returns are audited each year. No one but the IRS knows for sure what will trigger an audit. But, based on data from past years, there are some possible red flags that may cause the IRS to audit your return.
No matter what, you should file your taxes accurately and on time, take all the deductions you are allowed, and make sure you have the proper documentation for them.
A higher income generally means a higher risk of an audit. More taxpayers that earn over $100,000 are audited than those that earn under that amount. But, remember, that anyone with any income can be audited. Also, taxpayers that claim a high amount of deductions for their income level are more likely to be audited.
In addition, the self-employed, those with complex business expenses, someone who works in or owns a business with regular cash tips, and someone who has been previously audited and found to owe more taxes are all more likely to be audited.
If you do get audited by the IRS, you don’t have to face them alone. Contact Levy and Associates, immediately, for tax help. Even if we didn’t prepare your return, we can represent you in an IRS audit. As CPAs and former IRS revenue officers, we have years of experience and have handled many different types of audits. We’ll work with you to get your documentation in order and put together your audit defense. The tax resolution experts at Levy and Associates will guide you through this and help you put it behind you. Call us — today.