If youâ? re about Uncle Sam under the microscope about your tax return, you’d worry? re not alone. Itâ? S natural to feel uncomfortable on a test, if youâ? Re count your financial data.

The good news is your chances of an audit are slim.

were on average only about 1% of all individual returns filed during the last three years (2006, 2007 and 2008) examined. About 36% of the proceeds were tested due to a tax credit on earned income (EITC), a tax credit for certain people who work and low wages have chosen.

Of the 1.36 million back to individual farms, with gross revenue from agriculture in 2008, only 0.5% can be detected. By comparison, the rates of audit reports of non-agricultural enterprises (of gross revenues) less than 000, 1.2%, below 000 in 0000, 1.9% in 0000 0000, 3.8% and 0.000 or higher, at 0 , 6%. The percentages have declined in fiscal 2007 in each income category.

The IRS has a table of average deductions for each income group. If your â? Institutionnelsa? above the average computer-generated, the probability of an increase of the test. (As you can see from the figures above the returns on higher incomes are more often tested.)

Although Thereâ? S do not know the exact extent of the IRS uses your income bracket, there are several ways to protect themselves.

Keep everything clean and organized. Make sure you can clearly read information and be sure to use the appropriate forms. report all income. Add form all W-2 and 1099, the IRS automatically because you copied your employer (s). Ensure that the operating expenses and home office deductions legitimate. If youâ? Not sure about a deduction, you talk to someone familiar with tax laws â? and save your documents. clarify something unusual. provides an explanation and documentation for the same items that you might think red flags with the IRS to increase (such as drastic changes in the income, losses, large donations, etc.) Check your return. to confirm your personal data is incorrect, correct your numbers, the forms are signed and folders to match your state and federal income tax returns.

Of course, the best defense against a test honesty. But also keep in mind the IRS a number of people each year to a completely random test selected.

So, if youâ? Re still worry about things to do, all on your return, donâ? ? Do not hesitate to contact an accountant with questions or concerns.


IRS Audit Defense