Various federal agencies are experiencing cuts under the new presidential administration. One agency that has been hit particularly hard in recent years is the Internal Revenue Service (IRS). As the number of workers within this agency declines, the amount of work the agency is able to complete has also gone down. This has resulted in a decrease in the number of audits completed in the United States over the past few years.
How much of a decrease is there in the amount of audits completed in the US? The decrease is fairly significant. In 2016, the number of taxpayers audited by the IRS decreased by 16 percent. This translates to the lowest audit rate in over a decade.
With a decrease in audit rates, can taxpayers take a risk on their tax returns? In short, the answer to this question is no. As noted in a recent piece by the Associated Press, taking a risk at the roulette wheel when it comes to your taxes is not a good idea.
How do I know if I am a target for an IRS audit? A previous blog, 2 Red Flags that Trigger an IRS Audit, touched on some of the factors that can increase the likelihood of an audit from the IRS. One of the more common triggers involves income. Essentially, the more income you make, the more likely you are to become the target of an audit by the IRS.
What should I do if I get audited? It is wise to seek legal counsel if the federal agency contacts you to inform you that you are the subject of an audit. It is also important to note that remedies remain if you were the target of an audit and are unhappy with the results. In this situation, the results can be appealed.
In either situation, legal counsel is advised. This will better ensure that your legal rights are protected during the process. The attorneys of Robert J. Fedor, Esq., L.L.C. provide effective representation to clients across the nation in tax court. You can contact our Chicago or Cleveland offices for more information.