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The Risks of Being Audited »

Posted by: JamesMarcus 2 years, 7 months ago

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With today's deadline for filing 2006 tax returns, this is peak season for audit anxiety. The prospect of having to document all the claims on one's tax return is dizzying at best--and terrifying at worst. Here is the lowdown on your risk of being audited, how the process works and what you should expect if your return is singled out for inspection. For starters, relax. Most individual returns are unlikely to get audited, and a sit-down audit is rare.

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JamesMarcus

James Marcus is a writer, translator, critic, and editor. He is the author of Amazonia: Five Years at the Epicenter of the Dot-Com Juggernaut and ...

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Comments: 33

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getreal1
April 17, 2007, 1:18 p.m.
Some body needs to audit the people in the White House. Like from forty years or so back.
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rockman069
April 17, 2007, 1:16 p.m.
Save your receipts!!!!!!
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getreal1
April 17, 2007, 1:21 p.m.
They turnt us in to a turnip a long time ago. I wonder how much blood they can get?
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Beau7890
April 17, 2007, 1:23 p.m.
I remember hearing a few years back that the IRS had decided it's more cost effective for them to audit middle-class taxpayers who likely won't fight back, than it is to audit corporations and the wealthy, who can hire good accountants and tax attorneys.
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getreal1
April 17, 2007, 1:40 p.m.
The money traps are endless.
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saneman
April 17, 2007, 1:46 p.m.
I have been audited by the IRS before, and its not a terrifying event. You simply bring all your bank statements and receipts to the audit along with canceled checks and the IRS agent simply uses a calculator to add up all the income and expenses.
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quackpot
April 17, 2007, 2:06 p.m.
Simple - take the lead from the president and the last president LIE. Hey, they set (and are setting) the precident.
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christi3662
April 17, 2007, 2:29 p.m.
Are you talking about President Clinton?
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spikecwc
April 17, 2007, 7:34 p.m.
If you are filing a 1040EZ, you will not be audited.
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ListenUP
April 17, 2007, 4:41 p.m.
I just got audited by the State (VA) for the last 3 years. Evidently a combination of child care costs and a relatively high (10%) of charitable contributions got their attention.
My tax person for HR Block said she NEVER saw anything like it in her 26 years. All in all , the fact that I had all of the reciepts, saved the day.
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BronxBomber
April 17, 2007, 6:41 p.m.
Been audited -been there, done that, DON'T care for that ever again! How bad is being audited?
Let's just say I'd rather go through 3 root canals at the same time w/o novocaine.
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brothers
April 17, 2007, 6:56 p.m.
How about just a flat tax rate for everyone with no exceptions and deductions. The tax code would be one page long and no one can make any mistakes.
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spikecwc
April 17, 2007, 7:37 p.m.
believe, not beleive.
i before e except after c.
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spikecwc
April 17, 2007, 7:40 p.m.
One red flag the IRS has is when the taxpayer changes filing status and that change reduces the taxes for the taxpayer.
I changed from Married to Head of Household, and sure enough, they audited me.
Worked out OK, as the EX was cool and wrote a letter explaining that we were divorced and I had custody of our daughter.
That's all the IRS guy at the audit needed. Never asked about deductions or anything else.
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aceofspades1
April 17, 2007, 7:50 p.m.
A few years agfo I had to deal with the IRS - I told em "let's make a deal , I won't bother you & you don't bother me" -- " It doesn't work that way" the agent replied
funny thing is I got back a check for $500 my dummy acct. screwed up my sched C
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goodgrief
April 17, 2007, 7:54 p.m.
Stinkin' worthless government. The whole tax thing is ridiculous, onerous, and widly expensive. Lawers, CPAs, endless hours spent on the process. AND THERE'S NO NEED FOR IT. When the whole thing started it worked like this:
You made X, paid Y x Z%, sent a check.
Know why we have withholding? Projecting the post-WWII prosperity and rise of consumerism, the insidious worthless @#$@%$ government reasoned (correctly) that if we had to write that one big check at the end of the year we'd realize just how screwed we were. So withholding does two things: you feel it less, because you pay in smaller increments - and - the fed has cash flow (that they use to pay the interest on their debt because they routinely do what you'd get thrown in jail for)
HanymanComment has been removed: User banned.
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evelyna
April 18, 2007, 10:28 a.m.
I know someone who used a tax attorney to straighten out their problems.
Obviously the tax attorney did not do his job or they are sneaky. Now the irs is taking money from the guys ssi payments. He had a stroke and is useless. The wife is really irritated.
They should not be able to attach ssi or ss money.