Thank you for sharing the article.
According to this piece, the IRS is planning to significantly increase the number of audits they conduct. This can be seen as part of their ongoing efforts to ensure individuals and businesses are paying the correct amount of tax, and also as a method of tax revenue recovery, especially in the wake of the economic impact caused by the COVID-19 pandemic.
The article suggests that audits are expected to rise for several categories of taxpayers especially those with high incomes, businesses with large assets, those who claim the Earned Income Tax Credit (EITC), and those engaging in international transactions.
Taxpayers in these categories should definitely be preparing for a potential audit. Preparation should include being able to provide proper documentation and substantiation for all the income, credits, and deductions reported on the tax returns. Individuals and businesses alike should conduct a thorough review of their tax affairs and consider seeking advice from a qualified tax expert to ensure full compliance with tax laws.
Also, it's important to note that an IRS audit is not necessarily something to be feared. It's their way of checking the accuracy of tax returns filed and it doesn't always mean you did anything wrong. However, reducing your audit risk is always a good strategy. This involves being honest about your income, only claiming credits and deductions you're entitled to, and keeping comprehensive records of your transactions.
Remember, there are legitimate ways to minimize your taxes, but dubious tax strategies or evasion can lead to severe penalties, so it's important to always err on the side of caution and honesty.
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I still haven’t heard if it’s fixed. I know for a fact I don’t owe it.
