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Why do people get audited by the irs?

buddha? Asked by funguy about 1 year ago, 1 answer.
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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?

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lawn polar bear Answered by save_me on Jan 09, 2007, 01:04PM
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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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