{"id":502,"date":"2023-05-10T07:34:58","date_gmt":"2023-05-10T07:34:58","guid":{"rendered":"https:\/\/www.westevens.com\/blog\/?p=502"},"modified":"2023-05-09T14:24:52","modified_gmt":"2023-05-09T14:24:52","slug":"are-you-likely-to-be-audited","status":"publish","type":"post","link":"https:\/\/www.westevens.com\/blog\/are-you-likely-to-be-audited\/","title":{"rendered":"Are You Likely to Be Audited?"},"content":{"rendered":"

The short answer is probably not. Fewer than 1% of taxpayers get audited. But you should prepare for taxes like you\u2019re going to be.<\/p>\n

If you break out in a sweat when you think about the possibility of an IRS audit, you\u2019re not alone. It\u2019s a common source of anxiety. But your chances are slim in any given year.<\/p>\n

On top of the slim chances, there are two main high-risk groups. TRAC recently reported that the taxpayers most likely to be audited made over $1 million annually. The second most likely group consisted of taxpayers making less than $25,000 per year who claimed the Earned Income Tax Credit (EITC).<\/p>\n

Regardless of where you fall, there are steps you can take to ensure you are covered.<\/p>\n

Audit \u201cRed Flags\u201d<\/strong><\/p>\n

The best thing you can do to be ready if the IRS chooses you for an audit (and maybe even avoid one), experts say, is to prepare an absolutely accurate return. Some audits are totally random, and they can\u2019t be predicted. But make sure your calculations are correct. Report everything that\u2019s come in on forms like the W-2 and 1099s. Get your Social Security number right and sign your return.<\/p>\n

You\u2019d be surprised at how many people get basic details wrong on their tax returns. Don\u2019t be one of them.<\/p>\n

You may have heard about audit \u201cred flags,\u201d areas of the Form 1040 and its related forms and schedules that the IRS scrutinizes more closely than others. Though the IRS doesn\u2019t spell these out, it does compare returns to national \u201cnorms,\u201d returns that share similar characteristics, to see if your numbers seem suspect. But no one knows what goes into the agency\u2019s computer algorithms. It\u2019s a closely guarded secret.<\/p>\n

Still, there are some tax topics that seem to attract the IRS\u2019s attention, based on returns that have been audited. So, pay special attention and make sure you have all of your receipts\u00a0if your return includes:<\/p>\n