IRS Plans Random Audits

So, you’ve done everything right and completely above board on your taxes. You even rejected some of your accountant’s suggested deductions because they seemed a little close to the edge. Nothing, you told yourself, to raise any flags with the IRS. The money lost over a deduction or two was worth knowing that you wouldn’t face an audit.

Well, things have changed and even the most studiously honest tax returns may face review. The IRS is bringing back a controversial audit lottery that will randomly target taxpayers. Apparently no groups will be given special attention and no one is exempt from being possibly selected.

The first bunch of 13,000 tax payers will be selected from various income categories this autumn and reviews will commence in October.

Is there anything that you can do to prepare? Not really. Some audits will be carried out without the taxpayer even being aware that it is happening. If the IRS is able to confirm the return with their records then the investigation will stop. But most cases are expected to result in some face to face time with the taxpayer.