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Risk of tax audit may be higher for people who earn less

On Behalf of | Apr 7, 2015 | IRS Issues

A lack of funding for the Internal Revenue Service may not be a good thing for average families in Georgia. Although some people think that less IRS funding could result in a smaller chance of being audited, the opposite may actually be true.

According to statistics that were released by the IRS, tax audit risk has gone up for low and middle-income families but gone down for wealthy taxpayers. Since 2010, tax filers that reported $100,000 or less in annual income have seen a 17 percent increase in their tax audit risk. On the other hand, tax filers who reported over $100,000 in annual income have experienced an 8 percent decrease in their tax audit risk during the same period of time. Audits of low and middle-income families cost the IRS less money because they are usually issued through automated programs.

Americans who have questions or concerns about their taxes are receiving less support from the IRS due to budget constraints. Because many IRS departments have been shut down, some people must search extensively to find the department that is responsible for handling their particular inquiry. With fewer departments to provide assistance, callers to the IRS hotline are experiencing longer than average wait times.

A person who has learned that the IRS is auditing them may want to contact an attorney. Often, IRS audits are the result of simple clerical errors or miscalculations, and an attorney may be able to help a taxpayer achieve a swift resolution to the matter. To improve a person’s chances of a positive outcome after an IRS audit, an attorney may help the individual to gather a strong collection of documentation to prove that the error on their taxes was not intentional.