Why am I being selected for an IRS audit?

Even though we hear that most IRS audits are selected at random, we can tell you that most of the IRS audits that we represent are the result of red flags such as unreported income, income that does not match 1099s and W-2s, not reporting a foreign bank account, too many deductions, incomplete income tax return and even for not filing tax returns. The IRS selects taxpayers for audits based on a variety of factors on tax returns, including deductions that are higher than average or income levels that appear unusually low. The IRS also uses a scoring system to select taxpayers for audit purposes. This system assigns points to certain items on your tax return and if the total score is high enough, you may be selected for an audit.

Tax Tips: filing an amended return does not affect the chances of being audited. However, amended returns go through a rigid process.

Tax Tips: the fact that your return was selected for an audit, does not mean that you committed a crime. Most of the time, the IRS is just verifying your numbers.