The Audit Support Center recognizes that when you open the IRS letter, your mind goes into shock. It’s specifically designed to take the panic out of responding to that dreaded summons. TurboTax deals with that issue, too, with a downloadable feature called Audit Support Center, which you’ll store on your computer, just in case, as you prepare your tax return. But that creates a potential problem: Who do you turn to when that ominous IRS letter arrives? You probably use tax software because you don’t want to pay a professional to do your return. The audit risk meter shows whether you’re in the red zone and more likely to be audited, or in the green so you can heave a sigh of relief, sign your return and mail it or file electronically. It gives an explanation of why this is such a hot button, and advises you to consider alternatives or to keep backup data to justify the deduction. The TurboTax program flags items - or combinations of deductions - on your return that might likely provoke an audit. But using the information from the many tax professionals who create their software, TurboTax has identified many deductions and other common reasons that trigger an IRS audit. Of course, the IRS doesn’t announce the key items that it uses to choose a tax return for an audit. This year the popular software program (prices start at $44.95) has a new feature called the “Audit Risk Meter” that is designed to help you lessen the chance of your return being chosen for this extra scrutiny. That’s what makes the latest announcement from TurboTax so appealing. Similarly, audits of people who reported more than $100,000 in income increased nearly 14 percent. In 2007, the number of individual returns that were audited increased by 7 percent to 1,384,563 - the largest number since 1998.Īudits of individuals with incomes over $200,000 reached 113,105 last year - up 29 percent from the previous year. ![]() ![]() Who doesn’t dread opening a letter from the IRS? If you know it’s not a refund check, it probably means an AUDIT! Even if you’re the most honest taxpayer in the country, you don’t want to be in a disagreement with the IRS.Īnd the IRS is getting tougher.
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