However, it does mean that something on your tax returns triggered their computer screening process. Because the screening involves comparing your tax return against the "norm", often a tax return that falls too far out of the spectrum will raise an alarm.. Another cause for an IRS Audit might be that you did business with someone that is currently undergoing an audit.

So while the odds are in your favor that you will fall into the 99% of non-audited tax returns, there are some IRS Red Flags that, IF YOU CAN AVOID, will help keep you from the audit pool group.

More than three months of your hard-earned wages. money to pay their taxes. "tax freedom day," as the Tax Foundation calls the date that the average American is finally free of its tax burdens,

But full-blown audits don’t actually happen all that often. The IRS is auditing fewer returns these days, mostly due to federal budget cuts that have affected staff size since 2010. Only 0.6 percent of returns earned extra, intense review in 2016. This was down from about 0.8 in 2014 and 2015.

There are plenty of reasons your tax. people make that can trigger audits as well, and many of these are 100% avoidable. Here are three mistakes commonly made by investors that could get your tax.

If the IRS selects your return for audit (also called examination), it doesn’t automatically mean something is wrong. Once the IRS completes the examination, it may accept your return as filed or propose changes. These changes may affect the amount of tax you owe (a proposed deficiency) or your refund amount.

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Each year, taxpayers make a reasonable attempt to comply with the tax law for a few reasons. In an IRS Oversight Board survey, taxpayers identified third-party information reporting (62 percent), the fear of an audit (59 percent) and belief that others are honestly paying their taxes (51 percent) as three main reasons to file honestly.

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An Offer in Compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service (IRS) that allows the taxpayer to settle his liabilities for less money than he owes. When submitting an OIC application, the taxpayer will offer an amount that he feels comfortable paying, then await a response.