Wednesday, January 27, 2010

WILL MY TAXES CREATE A RED FLAG WITH THE IRS?

Larry, I am wondering if the fact that we are going to be submitting something so entirely different this year in regards to taxes, if that will create a red flag to the IRS and make us that much more susceptible to auditing?

Tessa

Tessa, I hope all is well. You do not have to worry about creating a “red flag” due to the fact that things are different on your tax returns. Fortunately, the IRS does not have the computer sophistication to compare one year with the next. As a matter of fact, if you were chosen for an audit the auditor would not see the prior and/or succeeding year until you are selected for audit. And even at that the auditor normally asks us for copies of the return, he or she does not even retrieve the returns through the IRS system. Rest easy.

Let me know if there is anything else we can do to assist.

It is a pleasure serving you.

Larry Kopsa CPA