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IRS Audit Resources Mitchell SD

While we all fear an asteroid blowing up the planet, a more realistic fear for most of us is getting audited by the IRS. Well, new statistics are out telling us when the IRS starts auditing taxpayers.

Mr. Todd M. Klein (RFC®), CFP
(605) 348-2433
1241 E St. Joseph St
Rapid City, SD
Company
Fintegra, LLC
Qualifications
Years of Experience: 19
Membership
IARFC
Services
Invoice, Estate Planning, Portfolio Management, Retirement Planning, Tax Planning, Tax Returns, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Education Plan

Data Provided by:
H&R Block
(605) 362-2567
3400 EMPIRE MALL
SIOUX FALLS, SD

Data Provided by:
Liberty Tax Service
(866) 871-1040
1520 W 12th St
Sioux Falls, SD

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Liberty Tax Service
(866) 871-1040
5216 W 26th St
Sioux Falls, SD

Data Provided by:
H&R Block Inside Sears At Rushmore Mall
(605) 399-2114
2200 N MAPLE AVESW Suite 8
RAPID CITY, SD

Data Provided by:
Liberty Tax Service
(866) 871-1040
532 E Anamosa St
Rapid City, SD

Data Provided by:
Liberty Tax Service
(866) 871-1040
1943 Dakota Ave S
Huron, SD

Data Provided by:
H&R Block
(605) 332-8081
4601 E ARROWHEAD PKWY STE 101
SIOUX FALLS, SD

Data Provided by:
Liberty Tax Service
(866) 871-1040
633 E Sioux Ave # 6
Pierre, SD

Data Provided by:
Determan Ross CPA
(605) 996-1166
1130 S Burr St
Mitchell, SD
 
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IRS Audit Resources

Income Levels When The IRS Starts Auditing You

While we all fear an asteroid blowing up the planet, a more realistic fear for most of us is getting audited by the IRS. Well, new statistics are out telling us when the IRS starts auditing taxpayers.

The IRS typically looks back at your three past tax returns when considering whether an audit should be done. What are the specific factors the agency looks at in making that determination? Well, that is a state secret. The agency develops profiles of niches and then compares their tax return information to the profile. If you fall outside of the profile in some certain way, you stand a good chance of getting audited.

The IRS does not release these profiles to the general public. This is hardly surprising if you think about it. So, how do you know whether you are at risk? Well, one huge factor is how much money do you bring in and claim as income? The IRS has been taking a business approach to tax collection since the middle 1990s. This means the agency wants to get the most return it can for its effort. This new approach has had a practical effect on audit rates. Let's take a look.

The statistics for IRS audits that have just come out reveal something significant. If you have total income of less than $200,000, you have a 1 in 100 chance of being audited. This is a low number. People that bring in more money have a much higher chance. People who earn up to a million dollars a year have a three percent chance while those earning more than that have a six percent chance.

Now, it is important to understand what an audit is. There are different types. From September 30, 2008 to September 30, 2009, the IRS performed 1.4 million audits. Of this number, one million were "correspondence audits". This means the IRS simply sent a letter asking for clarification, supporting documents or more money. I actually received one of these. I failed to pay a late penalty on my tax payment according to the IRS. I checked and the agenc...

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Opinion Corner
Tax Payers in South Dakota shared their opinions about Government
Was the service you received worth the fee you paid?
Yes: 100%
No: 0%
What are the reasons you have not consulted an IRS settlement/mediation service?(Select all that apply)
Cannot afford it: 0%
Do not need it: 66%
Think it is a scam: 0%
Do not know what that is: 33%
Not sure: 0%
Would you use an IRS settlement/mediation service if there was no upfront fee?
Yes: 33%
No: 0%
Need more information: 66%
Source: Survey.com