How To Avoid IRS Tax Audits

We wanted to provide some information about something most people dread: IRS tax audits.  Hopefully this post will help you relax and possibly avoid an audit.

  • Chances of an audit are very low – on average less than 1% are subjected to audit, those claiming $25K to $200K in income are audited at a rate of ~.5% and those below and above those income levels are at higher audit rates.

  • Sometime an audit can be positive – in 2015 the IRS gave an additional $1.1 billion in refunds to auditees.

  • Audits often happen much later – the IRS has 3 years to open an audit and can go back as far as six years where ‘substantial’ errors are detected.

  • Filing electronically decreases your risk – consider having a professional help you with this.

Jiseki will be launching a low cost tax preparation service in the next couple weeks. Let us help you keep more of your money - watch for more information coming soon.