What are YOUR chances of being audited?
It seems that your chances of being audited by the IRS depend on different factors, such as the amount of income your report, the full complexity of your return, but also the types and amounts of deductions you claim. Also, it seems that owning foreign assets might have a thing to say in all of this. But let’s find out more:
Failing to report taxable income
The IRS gets all the copies of the 1099s and W-2s you get, so make sure you report all required income on your return. IRS computers are very good at cross-checking the forms with the income written on your return.
Given all that, spotting a mismatch will automatically send a red flag, and it might cause the IRS computers to spit out the bill the IRS sends you. If you get a 1099 with an income that’s not even yours or listed with the wrong name, make sure you get the issuer to file the proper form with the IRS.
Also, report all income sources on that 1040 return, no matter what. For instance, if you get paid for walking your neighbor’s dogs, tutoring, or driving for Uber, the money you get is also taxable.
