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Old 03-06-2009, 04:38 PM
Gene E. Utterback, EA, RFC, ABA
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Default Re: Audit likelihood?

"Kevin" <Kevin[at]rocketmail.com> wrote in message
news:goop3l$lbn$1[at]news.motzarella.org...
- quote -

> The IRS audited me last year and found nothing of significance.
> Does that change the likelihood I will be audited in the future? I can
> see it going down because I "passed", or up because I am somehow in their
> records.


It does NOT change the likelihood significantly either way.

Every return that is filed gets input into a system that allow the IRS to
produce the "perfect" return - the best possible average for a person of
your age, in your geographic area, doing what you do, in your situation.
Your return then gets compared to that perfect return and if it varies more
than a certain percentage from the perfect return then you get selected for
audit. Simple (can't believe I said that) as that - nothing personal. All
of this is done by computer and the computer does NOT tell anyone WHY your
return was kicked, it just kicks it out for audit. It is then up to a real
live human being to decide what to audit.

There was something on your return that caused it to fall outside of
acceptable parameters, that is why you got audited.

If that same something is still on your return you will likely get another
audit notice, but fear not.

There are provisions in the Internal Revenue Manual (note that is NOT the
law, but their internal operating playbook) that ALLOWS (but does not
require!) them to give you a pass in years 2 and 3 after your first audit IF
you are audited again for the same issues and the first audit resulted in a
NO CHANGE. This is because the humans involved have come to realize that
sometimes the computers don't know everything.

It will NOT protect you from getting the audit notice, waiver is not
mandatory, and it does NOT mean that they can't look at other things they
did not consider on the first audit.

The best advice I can give, after 25+ years representing taxpayers who had
disputes with the IRS, is to not lose any sleep over whether you might or
might not get audited - that's like worrying every time you leave the house
if you'll have a car accident today because you had one once. If your
numbers and documents are in order, DAMN THE TORPEDOES!

Good luck,
Gene E. Utterback, EA, RFC, ABA

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
  #1  
Old 03-06-2009, 03:17 AM
AES
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Posts: n/a
Default Re: Audit likelihood?

In article <gopga7$4dm$1[at]aux.snarked.org> ,
"D. Stussy" <spam[at]bde-arc.ampr.org> wrote:

- quote -

> > The IRS audited me last year and found nothing of significance.
> > > Does that change the likelihood I will be audited in the future? I can

> > see this going down because I "passed", or up because I am somehow
> > in their records.


Or up because they think that you, having come up clean this year, may
therefore think you'll not be looked at next year, and as a result will
decide to try some fancy stuff;

Or, ad infinitum.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
 
Old 03-05-2009, 10:24 PM
D. Stussy
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Posts: n/a
Default Re: Audit likelihood?

"Kevin" <Kevin[at]rocketmail.com> wrote in message
news:goop3l$lbn$1[at]news.motzarella.org...
- quote -

> The IRS audited me last year and found nothing of significance.
> Does that change the likelihood I will be audited in the future? I can

see
> it going down because I "passed", or up because I am somehow in their
> records.


It means that generally, if your subsequent year return gets selected for
the same issue(s), you will have a "get out of jail free" card, unless
you've done something blatently not allowable.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
  #-1  
Old 03-05-2009, 05:45 PM
Kevin
Guest
 
Posts: n/a
Default Audit likelihood?

The IRS audited me last year and found nothing of significance.

Does that change the likelihood I will be audited in the future? I can see
it going down because I "passed", or up because I am somehow in their
records.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
 
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