You Finished Your Taxes
You drove to the Post Office that was open till midnight, and mailed your return. For many years I did drive to the Post Office on Sherman Way in Van Nuys. Then, things changed and I started driving there on October 15th. You know the drill.
Now That You Have Sent In Your Return What Are Your Chances Of Audit?
Here are some statistics from our beloved Internal Revenue Service.
- Individual returns: 0.6% or 1 in 167 returns.
- Earned Income Credit: over 1%
- Sole proprietors: between 1% and 2.1%
- Between $200,000 and $1M and no Schedule C: 0.8% and with a Schedule C: 1.6%
- Millionaires: 4.4%, but that is a drop from 5.83%
- C Corps: 1% but income over $5M the rate is higher.
- Regular corps: 31% no changes after audit
- Individuals: 8% no changes after audit
It Appears That They Are Not Auditing Entire Returns Anymore
They will call on a certain item. There are some things that draw more scrutiny as mentioned above, earned income credit.
Also, IRS funds are being cut so they have fewer auditors. I sure hope that they have enough to catch the really bad scofflaws who steal from the government and then we have to pay more in taxes.
Noel Seaman, One Of The Top Duane Gomer’s Speakers Ever, Used To Say
That the “Use of Home as an Office Form” should be called the “I Would Like to Be Audited Form”. I have heard of many people who use the Real Estate as a Professional deduction being audited.
Now, when you are audited be nice. Also be prepared. But not too prepared, as you should not bring your whole file if they only ask for your medical expenses.