# Avoiding IRS income tax audits **URL:** \ **Category:** Factual Questions\ **Created:** [April 19, 2017, 1:40pm UTC](https://boards.straightdope.com/t/avoiding-irs-income-tax-audits/784788 "2017-04-19T13:40:41Z")\ **Posts on this page:** 13\ **Page:** 4
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [April 22, 2017, 7:36pm UTC](https://boards.straightdope.com/t/avoiding-irs-income-tax-audits/784788/61 "2017-04-22T19:36:03Z")
> [@Quartz](#): > > One way, apparently, to get audited is to stop using your accountant and start doing your taxes yourself. This happened to a friend. He rather suspects that the accountant reported him. Fortunately, he is meticulous about records and had everything on his computer so when HMRC came calling he just printed everything off and said, “There you go.” and they haven’t bothered him since. Again, no, unless the accountant reported him for tax fraud. ---
**Author:** ![TokyoBayer](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tokyobayer/32/13989_2.png) [@TokyoBayer](https://boards.straightdope.com/u/TokyoBayer)\ **Post date:** [April 24, 2017, 11:51am UTC](https://boards.straightdope.com/t/avoiding-irs-income-tax-audits/784788/62 "2017-04-24T11:51:53Z")
How would the accountant know that he was doing it himself vs. switching to another accountant? ---
**Author:** ![Quartz](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/quartz/32/267_2.png) [@Quartz](https://boards.straightdope.com/u/Quartz)\ **Post date:** [April 24, 2017, 3:42pm UTC](https://boards.straightdope.com/t/avoiding-irs-income-tax-audits/784788/63 "2017-04-24T15:42:57Z")
> [@DrDeth](#): > > Again, no, unless the accountant reported him for tax fraud. Don’t forget human nature; people can be vindictive, you know. This accountant had just lost my friend’s business. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [April 24, 2017, 4:36pm UTC](https://boards.straightdope.com/t/avoiding-irs-income-tax-audits/784788/64 "2017-04-24T16:36:42Z")
> [@Quartz](#): > > Don’t forget human nature; people can be vindictive, you know. This accountant had just lost my friend’s business. Yes, but he could get disbarred for that. Look at it this way- the only tax years he know of are the ones he did the returns for. And when you fill “report” someone you tell the IRS what you know, etc. Saying “I did this guys returns for years and of course those were good, but now he is no longer a client so maybe he is taking bad deductions” is gonna get shitcanned and the IRS will look into the CPA. ---
**Author:** ![Pixel\_Dent](https://avatars.discourse-cdn.com/v4/letter/p/bc8723/32.png) [@Pixel\_Dent](https://boards.straightdope.com/u/Pixel_Dent)\ **Post date:** [April 24, 2017, 6:11pm UTC](https://boards.straightdope.com/t/avoiding-irs-income-tax-audits/784788/65 "2017-04-24T18:11:40Z")
> [@DrDeth](#): > > That’s not how audits work. The auditor does not select the return. The computer does, then a team of senior auditors goes over them to decide what issues really are audit worthy, culling about half. > > Then it is assigned to a group, then a auditor. > > So, it is categorically impossible that the “audit trigger” was caused by “The auditor didn’t understand how he could possible sell stock before he purchased it.”. Well, this happened in 1978. Is it possible procedures have changed since then? ---
**Author:** ![Quercus](https://avatars.discourse-cdn.com/v4/letter/q/7ab992/32.png) [@Quercus](https://boards.straightdope.com/u/Quercus)\ **Post date:** [April 24, 2017, 6:29pm UTC](https://boards.straightdope.com/t/avoiding-irs-income-tax-audits/784788/66 "2017-04-24T18:29:44Z")
> [@Machine\_Elf](#): > > The car isn’t difficult; I keep receipts and shipment records to account for visits to stores and USPS/UPS. > > But what about something like a saw, or a welder? if I claim that’s it’s 80% used for business, and I get audited, what would the IRS expect me to provide in order to document/prove my claim? What kind of personal welding are you doing, anyway, that will be 20% of your work use? ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [April 24, 2017, 8:02pm UTC](https://boards.straightdope.com/t/avoiding-irs-income-tax-audits/784788/67 "2017-04-24T20:02:31Z")
> [@Pixel\_Dent](#): > > Well, this happened in 1978. Is it possible procedures have changed since then? Sure. My Bro started work there in the mid 1980’s, I worked at the Treasury starting just after that. ---
**Author:** ![Machine\_Elf](https://avatars.discourse-cdn.com/v4/letter/m/82dd89/32.png) [@Machine\_Elf](https://boards.straightdope.com/u/Machine_Elf)\ **Post date:** [April 24, 2017, 8:29pm UTC](https://boards.straightdope.com/t/avoiding-irs-income-tax-audits/784788/68 "2017-04-24T20:29:45Z")
> [@Quercus](#): > > What kind of personal welding are you doing, anyway, that will be 20% of your work use? It might help if I mention that the business activity I’m talking about here isn’t my 40-hours-a-week day job; it’s a nights-and-weekends-at-home thing that serves to supplement my day job income. Thinking back on my business activity for 2016, I’d say the welder saw about 23 hours of use. In the case of the welder - in fact, for most of the equipment on which I’ve taken a tax deduction - 20% personal use is probably a severe overstatement; I’m pretty sure I didn’t do 4.6 hours of personal welding last year. ---
**Author:** ![Quartz](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/quartz/32/267_2.png) [@Quartz](https://boards.straightdope.com/u/Quartz)\ **Post date:** [April 24, 2017, 10:07pm UTC](https://boards.straightdope.com/t/avoiding-irs-income-tax-audits/784788/69 "2017-04-24T22:07:19Z")
> [@DrDeth](#): > > Yes, but he could get disbarred for that. Not if it’s done anonymously,. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [April 24, 2017, 10:16pm UTC](https://boards.straightdope.com/t/avoiding-irs-income-tax-audits/784788/70 "2017-04-24T22:16:34Z")
> [@Quartz](#): > > Not if it’s done anonymously,. Ok, then what would the CPA say on the anon form? and then, how did Quartz friend know? True, he only suspected "One way, apparently, to get audited is to stop using your accountant and start doing your taxes yourself. This happened to a friend. He rather suspects that the accountant reported him. " ---
**Author:** ![dblenks90](https://avatars.discourse-cdn.com/v4/letter/d/7c8e57/32.png) [@dblenks90](https://boards.straightdope.com/u/dblenks90)\ **Post date:** [April 25, 2017, 8:04am UTC](https://boards.straightdope.com/t/avoiding-irs-income-tax-audits/784788/71 "2017-04-25T08:04:47Z")
> [@Omar\_Little](#): > > As long as the statistics of your return are in the normal range for other taxpayers of similar incomes, your chances of being audited are greatly diminished. > > If you are itemizing deductions and your interest deduction, charitable contributions, medical expenses, non-reimbursed work expenses, etc. as a % of your adjusted gross income are significantly out of whack from other people with similar income levels, then your chance of being audited go up significantly. Thanks for the info! That really puts it into perspective. ---
**Author:** ![watchwolf49](https://avatars.discourse-cdn.com/v4/letter/w/e9c0ed/32.png) [@watchwolf49](https://boards.straightdope.com/u/watchwolf49)\ **Post date:** [April 25, 2017, 2:57pm UTC](https://boards.straightdope.com/t/avoiding-irs-income-tax-audits/784788/72 "2017-04-25T14:57:47Z")
A couple of odd statements … > [@DrDeth](#): > > [snip] … And when you fill “report” someone you tell the IRS what you know, etc. Saying “I did this guys returns for years and of course those were good, but now he is no longer a client so maybe he is taking bad deductions” is gonna get shitcanned and the IRS will look into the CPA. Why would the IRS get mad at someone reporting suspected tax fraud? … I understand this example is pretty cheesy but the IRS agent just needs a minute or two to look up the tax payers returns … if the returns look clean, no big deal … seems to me the IRS would rather hear about the suspicions rather than have people stay quiet … Consider the moderators on these boards … they generally encourage us to report suspected rules violations … they don’t have time to check each and every post and they rely on us to report our suspicions … if it is a rules violation, great … if not, no big deal … if they didn’t want me to report moderator actions as junior modding, they’ll tell me so … > [@md2000](#): > > [snip] … I assume if the numbers don’t make sense while they are doing an audit, that would be grounds to subpoena you bank records. I would bring my banking records with me for the first meeting with the auditor … in my case, these bank records provide a concrete defense against any charges of wrong-doing … if I had a side operation going on and wanted to hide the income, the last thing I would do is cash the checks at a FED-member banking institution, I would at least make the minimal effort to “launder” the money somehow … Your bank records and your tax returns should be a perfect match … or you’re just asking for trouble … ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [April 28, 2017, 4:39pm UTC](https://boards.straightdope.com/t/avoiding-irs-income-tax-audits/784788/73 "2017-04-28T16:39:42Z")
> [@watchwolf49](#): > > A couple of odd statements … > > Why would the IRS get mad at someone reporting suspected tax fraud? … I understand this example is pretty cheesy but the IRS agent just needs a minute or two to look up the tax payers returns … if the returns look clean, no big deal … seems to me the IRS would rather hear about the suspicions rather than have people stay quiet … > > Consider the moderators on these boards … they generally encourage us to report suspected rules violations … they don’t have time to check each and every post and they rely on us to report our suspicions … if it is a rules violation, great … if not, no big deal … if they didn’t want me to report moderator actions as junior modding, they’ll tell me so … > > I would bring my banking records with me for the first meeting with the auditor … The IRS isnt stupid. You got a tax Preparer, who has prepared this guys returns for years. Then, one year, he doesnt. Ok that is a little suspicious. So, you look into it, and find everything clean. Hmm, then the CPA then lied on the referral form. (you dont just say “this guys return may be funny” you give specifics). Ok, that’s pretty bad and now why did the CPA lie about a former client? because lost business? Ok, that’s REALLY bad. Bring the bank records only if requested. [Previous page](https://boards.straightdope.com/t/avoiding-irs-income-tax-audits/784788.md?page=3)