Are You Going To Get Audited By The IRS?

The short answer is “probably not.” Less than 1% of tax returns are audited. Generally, there is a reason for the ones that get chosen. When the IRS receives a tax return, they score it. This identifies the tax returns where the numbers are outside the average from someone whose work is similar to the taxpayer.

There are ways to protect yourself. First, make sure your tax return is prepared by a qualified professional, like a Certified Public Accountant or an Enrolled Agent. Do not be afraid that it will be too expensive because it will be far more expensive if you get audited. Stay away from unlicensed tax preparers who will get you a large refund and a high chance of audit. I see some returns that are so out of whack, that they may as well have written “AUDIT ME” in red on the front page.

Be careful if you decide to buy a program and prepare the return yourself. If it is simple and you were taking a standard deduction and there is nothing complicated, you could be fine. However, if you are taking significant deductions or have to prepare different schedules, you may not understand all of the questions on the tax program. I often see confused taxpayers take the same deduction several times.

This is serious business. An audit will cost you time, money and aggravation. When it comes to preparing your tax return, make sure it is done correctly so that you can put it behind you and not fear the IRS audit letter.