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When do they decide a IRS tax audit?

A

abc

Diamond Member
is there any clearly defined timing... such as...


they review your return that they received... and doesn't add up, so they send you a audit letter... and you don't get your refund in the 'usual' time...


or they send you the refund... but still research your fishy return?



or they continually review people's returns throughout the year?
 
The government is quite persistent when it comes to money "owed" to it. I think they can come after you any time, for any or no reason at all. (ie, random checks on the system)
 
Originally posted by: HappyPuppy
There is no statute of limitations on income tax fraud. They can come back at you 15 years down the road if they desire.
Click to expand...

Are you sure about that???
 
Income tax is illegal on compensation. Wages are considered compensation...
 
Originally posted by: Wuffsunie
The government is quite persistent when it comes to money "owed" to it. I think they can come after you any time, for any or no reason at all. (ie, random checks on the system)
Click to expand...

thats what i'm curious about... is it really random checks on all citizens, all the time, or during the tax return review process period and if they processed your check, you're done for the year, or if they cut you a check, you're done for the year...
 
Originally posted by: dartworth
Originally posted by: HappyPuppy
There is no statute of limitations on income tax fraud. They can come back at you 15 years down the road if they desire.
Click to expand...

Are you sure about that???
Click to expand...

Yep. If they owe you money, the limit is three years. Theoretically, the limit is three years if you owe them money, but if they feel there may be fraud involved, then there is no limit.

Just had an audit for tax year 2001. Took an entire year solid of requests for documentation and meetings with the IRS, but in the end the only "questionable" items they uncovered were instances when I'd been more conservative than necessary in my tax treatment. On the plus side, I'll get money back as a result of the audit, but on the minus side, the time involved added up to a month or two of full-time work which could otherwise have been spent earning taxable income.

Oh, well; I presume the IRS is of the opinion that the budget deficit is much too small and that they need to work harder to increase it.
 
wow trygve, so it's not like the audit has to start from last month's tax return submission, that if they start processing it and find it to be 'weird' so they start back tracking to previous years...


your 2002 and 2003 taxes were fine, yet they send you a letter to audit your 2001 taxes, now, out of the blue...
 
Originally posted by: jadinolf
Originally posted by: dartworth
Originally posted by: HappyPuppy
There is no statute of limitations on income tax fraud. They can come back at you 15 years down the road if they desire.
Click to expand...

Are you sure about that???
Click to expand...

The buzz word is fraud.
Click to expand...


i thought there was a limit of 3 or 5 years for most audits.
 
i thought there was a limit of 3 or 5 years for most audits.

Sigh. There is. 3 years as already mentioned for most audits. Exception is for suspected fraud as already mentioned by HappyPuppy, jadinolf, AND Trygve.
 
Originally posted by: abc
is there any clearly defined timing... such as...


they review your return that they received... and doesn't add up, so they send you a audit letter... and you don't get your refund in the 'usual' time...


or they send you the refund... but still research your fishy return?



or they continually review people's returns throughout the year?
Click to expand...
so how screwed are you if they audit you? 🙂
 
heh, i dont make much, not very.


i figure they target big cheese, bigger reward per time invested on their part... but they do randomly pick every day people so they can look 'objective'.

trygve, was your tax situation 'above avg. income' or avg. joe...
 
Originally posted by: abc
heh, i dont make much, not very.


i figure they target big cheese, bigger reward per time invested on their part... but they do randomly pick every day people so they can look 'objective'.

trygve, was your tax situation 'above avg. income' or avg. joe...
Click to expand...


Wrong. Every since Bush took office more audits are of people that make less then 100K NOW. So save anything relating to your taxs for at LEAST 5 years.


Older story but backs up what I said


Heres another story

"While letting rich tax cheats run wild, Congress did finance a crackdown on the poor. The working poor, most of whom make less than $16,000, are eight times more likely to be audited than millionaire investors in partnerships.
The audits of low-income taxpayers found little cheating. Two-thirds of the poor get either their full refund or more than they sought."
 
Every since Bush took office more audits are of people that make less then 100K NOW. So save anything relating to your taxs for at LEAST 5 years.

Wow. Some people will turn anything into a political issue.
 
Originally posted by: Marlin1975
"While letting rich tax cheats run wild, Congress did finance a crackdown on the poor. The working poor, most of whom make less than $16,000, are eight times more likely to be audited than millionaire investors in partnerships.
The audits of low-income taxpayers found little cheating. Two-thirds of the poor get either their full refund or more than they sought."
Click to expand...

Uh, since there are a lot more than 8 times as many poor than millionaire investor american taxpayers, isn't this how it should be?
 
Originally posted by: Chiropteran
Originally posted by: Marlin1975
"While letting rich tax cheats run wild, Congress did finance a crackdown on the poor. The working poor, most of whom make less than $16,000, are eight times more likely to be audited than millionaire investors in partnerships.
The audits of low-income taxpayers found little cheating. Two-thirds of the poor get either their full refund or more than they sought."
Click to expand...

Uh, since there are a lot more than 8 times as many poor than millionaire investor american taxpayers, isn't this how it should be?
Click to expand...



I think the numbers are based off %, not just raw loose numbers, but what % of this income vs what % of the other... etc...


But my point was to show the person that said I don't make much so i don't have to care, is wrong. The less you make the more likely you are to be audited now, esp in the last 3 years or so
 
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