IRS Tax Question?

Question

Was having a discussion with my wife. Are you more or less likely to be audited by the IRS when you have a tax service do your taxes.Like H&R Block, liberty etc. Thanks.

Answer 1

Chances are, you would be less likely.

Answer 2

That's a tough question to answer. There are a certain number of "red flags" that the IRS looks at to determine whether your return is selected for audit. These red flags has nothing to do with who prepared your return. If you have the same red flags, it doesn't matter whether your return was self prepared, prepared using software, or prepared by a professional, just having the red flags increase your chances of being audited.

Of course, there are also "unsavory" tax preparers out there that will willfully claim deductions that the taxpayer is not entitled to, etc. that will increase the chances of you getting selected for audit. No one can "guarantee" that you will get a refund. If they tell you that, run away, far away, as fast as you can. I recall several years back, there was an enrolled agent out in California that catered his services to the immigrant/minority community. He was an enrolled agent, so that means he was a licensed professional. However, he was investigated by the IRS because every single return he ever prepared for his clients ended up with large refunds. Statistically, this is virtually unheard of. So the IRS decided to audit all of his clients. It turned out that the preparer was "creating" dependents where there was none (this was before the IRS really started checking names and SSN's) and were claiming deductions that the person was not entitled to or did not have proof to substantiate the deduction. In the end, he lost his EA license, and most of his clients were assessed additional taxes, interest, and penalties.

If you don't want to be audited, then you also shouldn't consider getting a job with the IRS. Under the IRS regulations, employees of the IRS above a certain level or in certain positions are automatically audited every single year.

Answer 3

There's always a chance of being audited no matter who does your taxes. As it is the information contained on the returns that determines whether or not it will raise a red flag.
High amounts of charity contributions, self-employment/cash based businesses, health care, dependent, child tax credit, EIC..... Any thing that looks strange can set off IRS letters or an audit.
Just be honest. And if you have questions or something doesn't sound right, when someone is doing your return (H & R Block, Liberty, CPA, etc.)...ASK!

Answer 4

The only time it would make much difference is if a particular preparer gets identified as filing improper returns, then many of his/her clients would get audited.

If the person doing your return makes a mistake that the IRS identifies, then they don't usually audit your return, they just send you a letter detailing the mistake and telling you how much to send them if you owe extra taxes because of the mistake, or how much they'll send you if you owe less than you paid. This is whether you did your own taxes and made a mistake, or whether someone else prepared the return for you.

Answer 5

Unless you have a very complex situation, and if your return includes all documents that have been sent to the IRS with your income (w-2's and 1099's) it is extremely unlikely that you will be audited. Before an audit would occur, you might get a letter with a suggested adjustment, but that is not an audit.

Answer 6

Who does your taxes has no bearing on whether you will be auditted or not. Alot of peeple belive that if you use a service or CPA the nyou will have a better shot not to be, but that is just a myth. It is all based on the return itself.

Answer 7

My brother was audited two years in a row and when he called the IRS they told him the computer selects ramdonly those people.

Answer 8

I don't know about audited per se, but I worked for an accounting firm and we had people come in for us to do their taxes because H&R block had done theirs wrong. If you have a complicated return, I wouldn't have them do it.

Answer 9

Getting a "pennies on the greenback" deal demands which you in basic terms have the potential to pay that lots over a clever quantity of time. the certainty you could finally end up owing greater in penalty and pastime than the unique tax is irrelevant. in case you owe decrease than $25,000 and would pay it interior 5 years, IRS is going to go with you to do exactly that. The "As considered on television" decision companies advertisements are pushing delivers in Compromise. once you compromise for much less than100 cents for each greenback you owe and IRS forgives something. it is going to try this if it determines you're offering as lots or greater because it might desire to gather from you thru month-to-month money or seizing your factors. the quantity you will desire to pay is, to apply the IRS jargon, is "an quantity that represents the clever series skill of the account." that's a lump sum equivalent to what you will desire to get from the fairness in all your factors in the event that they have been bought at a rapid sale, frequently 80% plus 40 8 cases what you will desire to pay month-to-month on an installment settlement. working example, in case you had a motor vehicle worth $10,000 and owed $5,000 on it and not something and IRS reported you're able to make money to IRS of $one hundred according to month you will possibly would desire to grant 80% of $10,000 minus the $5,000 owed = $3,000 PLUS 40 8 cases $one hundred = $4,800 for a complete lump sum charge of $7,800 on in spite of you certainly owed. I have been given an grant for a customer who owed 1 / 4 million greenback criminal duty customary at a million cent on the greenback. Many different shoppers have not qualified and others can arise with what it might take in the event that they did qualify. yet another decision would artwork greater effective for you alongside with convincing IRS that the account isn't collectible in any respect appropriate now. in case you elect to hire a expert representative--enrolled agent, CPA or criminal expert--stay remote from those that publicize on cable television. I had one skill customer tell me he became quoted a cost of $3,900, an quantity triple what i might have charged, and he in basic terms owed $6,000.

Answer 10

whether you do it yourself or have it done for you supposedly not a criteria for audit. most criteria not a function of whether or not there are errors (unless you omit major items like earnings) but function of types of deducts, or just random.

Answer 11

Yes likely you are.It's best to do it your self or online like Turbo Tax.You really can do it by yourself,It's easy.The instructions for each line is in the booklet