Taxable income down to a few hundred since I was able to find some more deductions?

Question

All of which I have receipts and documentation for.

My income this year was $29K.

I also have some back taxes that I owe the IRS.

Just out of curiosity since my taxable income is almost nothing now -- what are the chances of an audit even before they mail me my tax refund check?

Is that even a possibility? In other words, I file my income tax return -- then the IRS asks for my receipts and proof of all my deductions?

Please Help!

Answer 1

An audit is always a possibility, but not real likely with income of $29K a year - most audits are on higher incomes.

Getting your taxable income down by having a lot of deductions doesn't keep you from getting audited, and if any of them look funny to the IRS computers, that could actually increase your chances of an audit - be sure to keep your receipts in case they ask to see them, which could happen.

Answer 2

The chance that you will be audited before a refund is issued is very small. Back taxes will be paid out of any refund for 2007.

The audit, if any, will likely come sometime in the next two years, if the IRS computers flag yours as one needing audit because of various factors that they don't disclose. However, deductions that take your current income down to almost zero, together with back taxes owed, would not be unlikely factors that they consider.