The Internal Revenue Service (IRS) is responsible for analyzing each and every tax return that they receive. With the substantial amount of data they hold, people from the IRS have the ability to figure if a return is accurate or not. If the items on your return do not match with what they have on record, then you may just have earned yourself an audit.
Discrepancies aren’t the only things that the IRS auditors look at. Sometimes, something that appears out of place is all it takes for them to sound the alarm and flag your name for an audit. For instance, having an annual salary of $100,000 and contributing $75,000 in donations is going to appear odd to an IRS auditor.
The IRS usually begins auditing questionable tax returns after eight to ten months once all the tax returns have been submitted. Late submissions are not accepted until October. Some taxpayers believe that submitting late reduces the likelihood of an audit. However, there really is no basis for this belief, so it’s always best to submit your tax returns on time, if you can.
In the event that you receive a letter from the IRS that says you’re up for an audit, act quickly. Get in touch with a tax relief expert who can address your tax-related questions and concerns as soon as possible.