IRS Audits and you.

IRS audits are more common these days.

According to the IRS, audits of individual income tax returns rose 1% in 2010 and the trend may continue in the foreseable future.

Taxpayers (TP) whose income are over $200,000 have more probability to be audited than (TP) under that income level, and that makes sense since they probably they have many sources of income and many deductions.  However, other factors should be taken into consideration like: type and levels of deductions, earned income credit claims, errors and misinterpretations in the application of the IRS code, and other multiple other reasons.  Small business (i.e., Schedule C) filers are prone to audits for the same reason(s) given above.

So, what can you do if you get audited?

You must hire a CPA or a Tax Lawyer.  Get your paperwork ready and all IRS notices and call your accountant at once.

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