Irs Tax Audit
IRS Audit
   Tax Return Audit | Tax Fraud


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One of the most frightening things about filing taxes is worrying about a tax return audit. A tax return audit is when the IRS reviews a payer's tax return and looks over every detail asking for proof. Even if taxes have been meticulously prepared, even the most careful person does not want to hear that they are being audited on their tax return.



The Internal Revenue Service or IRS, may choose to do a tax return audit on a person for different reasons. About 1.5 % of tax payers are chosen for a tax return audit every year; this number equals out to more than a million people. If a person has an income that is relatively low compared to the tax deductions he or she is claiming, this sets off a red flag for the IRS, and they may be chosen for a tax return audit. Another red flag for the IRS is that a person is claiming items on their tax return that need proof such as receipts. The IRS will do a tax return audit on these tax payers to make sure they have the documentation they need. An audit may be done on payers that have made errors on their tax returns as well.



When most tax payers hear the words Internal Revenue Service or tax return audit, they get very nervous. If the IRS did not do tax return audits there would be many payers lying on their tax returns to get a bigger check in the mail. If people were not afraid of the IRS and continually lying, taxes would be pointless because people would lie just to receive all of their money back.

Most of the people who the IRS chooses to have a tax return audit are people who make over $100,000 a year. The least amount of people who are chosen to be audited are in the $25,000 - $50,000 bracket of income. Most people will never be chosen for a tax return audit in their lives. People who file a Schedule C are more likely to be audited than people who file a simple W2.

In order to avoid a tax return audit a tax payer should follow some certain rules. First, watch the deductions you are claiming. There are many different deductions that are available to you, but do not stretch the truth, and make sure you have proof of each of them. If you make a charitable donation, you better save the receipt from the organization you donated to if you plan on claiming it on your taxes. Make sure last year's tax return is similar to this year's. Chances are that your tax return from last year will look quite similar to this year's unless you changed or lost your job. If you have the same occupation and suddenly are claiming multiple deductions, you are showing a red flag for a tax return audit.
   Use a security audit program. Receive a stable annual return with an eighteen month CD.