We just updated our audit odds calculator with the latest data so you can weigh your chances of facing a tax audit. But, what happens, and how should you react, if you "win" the audit lottery?
Don't increase your audit risk
Be aware of these five tax moves that could increase your chances of being audited.
Whatever the reason you're the chosen one, it's chilling to get the word that the IRS wants to examine your return. After all, everyone knows that the IRS was able to do what J. Edgar Hoover and all the G-men of the FBI couldn't do: put Al Capone behind bars.
Even if you have no reason to think you did anything wrong, you can't escape the anxiety that accompanies an audit notice. For one thing, the return being audited is unlikely to be the one you just filed. A lot of taxpayers are only now hearing from the IRS about their 2015 returns ... and some 2014 returns are just coming up to bat. (Generally, the IRS has three years from the due date of your return—until April 15, 2020, for 2016 returns—to initiate an audit.)
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