Article Link: http://exchangepress.com/article/protect-yourself!-how-to-minimize-your-risk-of-an-irs-audit/5012277/
We have some good news and some bad news for you! The good news is that Congress is presently focusing on a complete restructuring of the operations of the Internal Revenue Service in the hopes of making it more user friendly and to end assorted abuses perpetrated by the Department. The bad news is that the government still needs to collect as much revenue as they can, so you can expect that the enforcement arm of the Service will remain, and that means audits will still loom over everyone.Have you ever been audited? The typical first reaction to receiving an audit notice is "Why me??!" Just because you receive an IRS notice indicating that your return is being examined does not necessarily mean that you did anything wrong! It might be that your return was selected at random. Your audit odds vary in relation to your total income and profession, where you live, type of return, and type of transactions reported on return. Further, the IRS has a secret system by which returns are scored to determine which returns might bring them the highest audit assessments.
The IRS does not have the personnel or resources to examine every return, but ...