What is the chance of a tax return being AUDITED by the Internal Revenue Service (IRS)?
An individual income tax return (Form 1040) has approximately a 1% chance for an audit. The IRS has identified certain professions as target professions and individuals in these professional are at greater risk regarding an IRS audit of their tax returns. The IRS does an automatic check of tax returns against prior year tax returns and pre-established criteria and assigns points for variances from the prior years tax returns and for conditions outside the pre-established criteria. Based on the points assigned to a tax return, the tax return will be reviewed by an agent and after this review the tax return may be subject to audited based on the finding of the preliminary review. Business income tax returns are less likely to be audited by the IRS than are individual income tax returns. What is the date that taxpayers should receive the TAX INFORMATION FORMS? January 31 re: Form W-2, Form 1099, Form 1098, Form5498 For Schedule K-1 (“S” Corporations, Partnerships and Fiduciaries and Trust
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- What is the chance of a tax return being AUDITED by the Internal Revenue Service (IRS)?
