Angle, Zaebst & Associates logo
Quick Links

"NEWS NOTES"

From the office of Angle, Zaebst & Associates
How is a tax return selected for audit?
 

  1. Your tax return may be chosen at random by IRS computers.
  2. Tax returns are chosen for audit based on the findings of an IRS computer-generated program that gives returns a numeric score called a D.I.F. score.
    • For example, your score may be increased if itemized deductions do not appear to be reasonable based on your income, family size,  profession, and where you live. 
  3. Your return may also be given a score that rates returns for the potential of unreported income (U.D.I.F. score.)  The IRS has cash intensive businesses on its radar.
  4. The IRS has an information matching program.  Returns can be selected for examination if the amounts from a W-2 or 1099 form do not match the income reported on the forms provided to the IRS from employers, banks, or brokerage firms.  These types of examinations are often completed by mail and by answering an IRS notice.
  5. The 1040 of a partner in a partnership or a shareholder of a S-corporation will likely be audited if the IRS audits the tax return of the s-corporation or partnership.
  6. Your tax return was audited last year.
 
Each entity or person's situation is unique and should be analyzed based upon all of the laws and regulations that exist at the time of a decision. Although we try to send current and accurate information, laws change and can be complex. The information presented in this e-mail should not be construed as legal, tax or accounting advice. You should consult with Angle, Zaebst, & Associates CPA's or other professionals familiar with your particular factual situation for advice concerning specific tax or other matters before making any decision.