There’s no sure way to know.  Most “audits” are done by computer.  It compares your return with W-2 forms and 1099 reports from banks and brokers.  If there is a discrepancy, you get a letter showing how much you owe if IRS is right – it looks like a bill.  Don’t pay!  Many of these “audits” contain errors.  About 15% of these “audits” involve a face-to-face meeting with an IRS employee.

There is the strong possibility that the IRS has been increasing its number of employees, in recent months, because they plan to increase the number of  taxpayer “audits” in the near future.  In fact, the Western CPE June 2010 Tax Tips Issue, stated that the IRS has shown steady progress in increasing its audit coverage, i.e., “Total individual audits increased 2.6%; High-wealth audits increased 11.2%”.

If you get a letter requesting a meeting, call whoever prepared your return right away … OR CALL ME!  I can help you interpret an “audit” letter and/or represent you in a face-to-face meeting with IRS employees.  As an Enrolled Agent (E.A.), I can help/represent you even if I DID NOT prepare your tax return.