How does the IRS select your return for an audit?

Your audit chances depend on many things. Some factors you have control over, some you don’t. The IRS keeps some determining factors secret but many are open to the public. The type of job you have and your employment status can
influence whether or not your return is audited. Who or what accounting firm you hire to complete your tax return can also be a factor. Just remember to keep good records and to avoid reporting deduction/expense amounts that are out of line with other individuals who are reporting the same amount of income. If you have questions about this issue, please feel free to call our offices.

Discriminate Function Score - Returns are ranked for non-compliance likelihood

Special Projects - Returns are chosen for audit based on job or other factors.

Referrals - The IRS sometimes audits returns based on tips from individuals or government agencies.

Tax Preparers - The IRS targets returns signed by preparers who have made “errors” in the past.

Manual Sorting - IRS auditors physically scan returns for signs of problems.

Miscellaneous - Other assorted issues cause this small percentage of returns to be audited.

For additional information or questions regarding IRS audits, please contact our offices at (714) 867-2200.