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Why do people get audited by the irs?

Asked by funguy over 2 years ago, 1 answer.

Tax season is around the corner. We all fear the IRS and I personally knew one guy who did get audited but he was really not too smart and he wouldn't fess up to doing anything wrong. Why do people get audited?

Answered by save_me on Jan 09, 2007, 01:04PM
49 answers

People get audited for a variety of reasons, but the IRS uses a statistical analysis software to determine the mean, medium, and other stats brackets for people who file. Then, it's a matter of reviewing the highs lows that make up the anomolies, and then more than likely prioritizing by revenue...eg, those that make up a bigger cash discrepency for the government are most likely to get audited first. Those that, while the return might not add up, result in a tiny difference in IRS revenues, will probably be last on the list.

However, it's illegal to cheat, so it's always best to be honest consult a tax advisor, as they can help make sure you pay properly, and don't over pay or under pay.

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