By Eva Rosenberg, EA
Audits are pretty
terrifying experiences – even when you know you did nothing wrong. But what if
you did? Uh oh! The experience is even worse when you know that you fudged on
your tax return. What will they do when they catch you? Or, if you did more
than just fudge, what if you actually lied – and reduced your income a lot?
Will you go to jail?
Well, nothing is ever as
bad as you expect. First, let’s dispel one big myth. The average taxpayers,
even those with large omissions on their tax returns, will not be seeing jail
time. The worst that you will face are additional taxes and penalties. The bad
news is if you really did leave out a lot of income, or made up a large portion
of your expenses, your penalties could be crippling. That means you’re a crook.
Good news – and bad news
The good news is IRS
staffing is down. They were only able to audit about .7% (7/10th of 1 percent)
of all taxpayers (or 1.2 million audits). The bad news is the audits are more
targeted, designed to catch taxpayers who will owe more money. In fact, the IRS
assessed nearly $27 billion in additional taxes. The good news is, over 38,000
examinations resulted in additional refunds to the taxpayer of $829.5 million. Sometimes
audits are a good thing.
in time for tax season comes a tax book like no other. Packed with money-saving
strategies every taxpayer can use, Deduct Everything!
- #1 in Hot New Releases and Small Business Taxes on
Amazon - is the definitive guide to help you keep more of your
hard-earned money at tax time. You will learn all the latest tips from national
tax expert and best-selling author Eva Rosenberg - the award-winning TaxMama© -
a seasoned tax professional - including how to save money with hundreds of
write-offs, legal tax breaks, credits and loopholes.