Taxpayers Beware: IRS Audits on the Rise
The Internal Revenue Service (IRS) is ramping up its audit activity, and taxpayers should be aware of the increased scrutiny. According to the IRS, the number of audits conducted in the 2018 fiscal year was up by nearly 10 percent from the previous year. This means that more taxpayers are being targeted for audits, and the IRS is taking a closer look at their returns.
The IRS is targeting certain taxpayers for audits, including those who have high incomes, those who have made large charitable contributions, and those who have reported large business losses. The IRS is also focusing on taxpayers who have failed to report all of their income or have claimed deductions that are not allowed.
The IRS is also using new technology to identify taxpayers who may be underreporting their income or claiming deductions that are not allowed. This technology includes data mining and analytics, which allow the IRS to quickly identify discrepancies in taxpayers’ returns.
Taxpayers should be aware that the IRS is taking a closer look at their returns and that they may be subject to an audit. Taxpayers should make sure that they are reporting all of their income and that they are claiming only deductions that are allowed. They should also make sure that they are filing their returns accurately and on time.
Taxpayers who are audited should be prepared to provide documentation to support their claims. This includes receipts, bank statements, and other records that can verify their deductions and income. Taxpayers should also be prepared to answer questions from the IRS about their returns.
Taxpayers should also be aware that the IRS can assess penalties and interest if they are found to have underreported their income or claimed deductions that are not allowed. Taxpayers should make sure that they are filing accurate returns and that they are paying the correct amount of taxes.
Taxpayers should also be aware that the IRS can assess penalties and interest if they are found to have underreported their income or claimed deductions that are not allowed. Taxpayers should make sure that they are filing accurate returns and that they are paying the correct amount of taxes.
The IRS is ramping up its audit activity, and taxpayers should be aware of the increased scrutiny. Taxpayers should make sure that they are filing accurate returns and that they are paying the correct amount of taxes. They should also be prepared to provide documentation to support their claims and answer questions from the IRS. By taking these steps, taxpayers can help ensure that they are not subject to an audit.