Tax Time Here in South Windsor

Tax time here in south Windsor and everywhere else.
A four letter word you don’t want to hear IYGA .
(If You Get Audited)

What If You Get Audited? Ok

Tip: The chance of being audited rises with income level. In 2012, only 0.9% of those with incomes under $200,000 were audited; 3.7% of those with incomes between $200,000 and $1 million were audited; and 12.1% of those with income over $1 million were audited.
Source: Internal Revenue Service, 2013
“Audit” is a word that can strike fear into the hearts of taxpayers.

However, the chances of an Internal Revenue Service audit aren’t that high. In 2012, the IRS audited 1.0% of all individual tax returns.1

And being audited does not necessarily imply that the IRS suspects wrongdoing. The IRS says an audit is just a formal review of a tax return to ensure information is being reported according to current tax law and to verify that the information itself is accurate.

The IRS selects returns for audit using four main methods.2

Random Selection. Some returns are chosen at random based on the results of a statistical formula.

Information Matching. The IRS compares reports from payers — W2 forms from employers, 1099 forms from banks and brokerages, and others — to the returns filed by taxpayers. Those that don’t match may be examined further.

Related Examinations. Some returns are selected for an audit because they involve issues or transactions with other taxpayers whose returns have been selected for examination.

There are a number of sound tax practices that may reduce the chances of an audit.3

Want to know more?
http://www.mundofs.com/resource-center/tax/what-if-you-get-audited