Better than 1%
April 14th, 2006 | by mbhunter |Those are the odds that you’ll get audited this year by the IRS.
It’s not quite as likely as the probability that you filed for bankruptcy last year, but it’s close.
Some of the flags that increase the chance that you’ll be audited:
- Not reporting all of your income, especially income that the financial institution says that they reported to the IRS!
- Itemized deductions that fall outside normal bounds.
- Casualty losses claimed outside of IRS limits.
- “Businesses” that are really hobbies but deducted year after year as businesses.
Then there are the “oops” triggers:
- Not signing your return.
- Ditching some swigits on your SSN.
The odds are definitely in your favor that you won’t be audited, but don’t make the fool’s bet. Check out the post on Auditing: Not Just for the Rich and Famous out at the Tax Advice Day website, courtesy of H&R Block. The above points are explained in much more detail, and there are some more helpful tips on what to do if you do get audited.
