No taxpayer ever wants to be selected for a tax audit. But if you are selected for an audit there are some facts you should know it.  Here are some true facts about the IRS audit process, directly from the source.

First and foremost, the IRS will never contact you, your tax preparer or your tax attorney via e-mail about an impending tax audit. IRS rules require they contact you and your tax preparer via phone or U.S. mail if you are selected for an IRS audit.

Let’s say that your tax attorney or tax preparer recommended you file an amended tax return. That filing will not affect the audit selection process of the original tax return. But be aware, the amended tax return also goes through the normal tax return screening process and could be selected for audit.

I’m sure the biggest fact you want to know about is how the IRS tax audit selection process works.  The first step in the audit screening process is they review your data against normal returns. The IRS uses statistically tax return models that screen out returns that stand out against the “norms”. These returns are selected as part of the National Research Program which the IRS conducts to update return selection information.

Once the tax return has been identified as a possible audit candidate, it is reviewed by an experienced IRS auditor.  The auditor can accept the file as is, or based on his audit experience, note the questionable item and forward the tax return for assignment to an examining group.

The hard cold fact about the tax audit selection process, is it comes down to a “human” (IRS auditor) decision.

If you are selected for a tax audit by mail or in-person, it is recommended you contact your tax preparer and/or a tax attorney for representation.

For more IRS audit facts, visit the IRS website.

I’m letting everyone know right now! I’m cheating on my income tax this tax season – and you know why? I need the money.

The IRS won’t know that I’m cheating.  I’ll report more charitable contributions than I really did. I’ll claim deductions for the 10 new suits I bought, deduct the mileage for the 100,000 miles I drove, and claim depreciation on my home office equipment, all related to my fake home business.  Heck, I plan on claiming old Aunt Julie as a dependent too!

Just think, the additional few hundred bucks I get will come in handy when I have to pay a tax attorney to keep me out of jail.

That’s if I get caught?

Of course I am only kidding about cheating the IRS.  I would never consider defrauding them in any way. It’s just not worth it!  And I strongly suggest to all you taxpayers, don’t even think about cheating on your taxes.  Here’s why…

The Internal Revenue Service has stepped up it’s compliance with state of the art computer software, and they aren’t targeting the wealthiest taxpayers anymore.  Not only that, as more and more tax returns are filed electronically, the IRS has more time to poke around and review tax returns that deviate from normal computer tax models.  Another great reason not to cheat on your taxes is that the IRS has experienced significant revenue shortfalls over the last few years.  They are putting an emphasis on recovering past due tax debts and squeezing every penny out of taxpayers.

So avoid inflating tax deductions even a little bit, the last thing you want is a tax audit.  If the IRS accuses you of tax fraud, the consequences could be extreme.  If you are found guilty you will have to pay the amount, plus penalties, plus possible interest charges too.  In serious cases, you can be put in jail.  If you’re smart, you’ll want a tax attorney to represent you. You don’t want to know how much that will cost you.

Do yourself a favor, and avoid the temptation to cheat on your tax return.  Better yet, pay for a reputable tax preparer to calculate your tax return for you.  It’s best if the IRS doesn’t know your name!

The IRS has broadcasted a warning to all taxpayers to be alert for income tax scams. Although these tax scams are around all year, they peak around tax filing season. The so-called dirty dozen tax scams range from identity fraud to tax preparer fraud.

“Taxpayers should be careful and avoid falling into a trap with the Dirty Dozen,” said IRS Commissioner Doug Shulman. “Scam artists will tempt people in-person, on-line and by e-mail with misleading promises about lost refunds and free money. Don’t be fooled by these scams.”

Taxpayers need to understand that tax scams could lead to tax penalties, interest charges and even criminal prosecution.

Here are the Dirty Dozen Tax Scams the IRS is warning you about (republished verbatem from the IRS website.

1. Identity Theft
   Topping this year’s list Dirty Dozen list is identity theft. In response to growing identity theft concerns, the IRS has embarked on a comprehensive strategy that is focused on preventing, detecting and resolving identity theft cases as soon as possible. In addition to the law-enforcement crackdown, the IRS has stepped up its internal reviews to spot false tax returns before tax refunds are issued as well as working to help victims of the identity theft refund schemes.Identity theft cases are among the most complex ones the IRS handles, but the agency is committed to working with taxpayers who have become victims of identity theft.

   The IRS is increasingly seeing identity thieves looking for ways to use a legitimate taxpayer’s identity and personal information to file a tax return and claim a fraudulent refund.

   An IRS notice informing a taxpayer that more than one return was filed in the taxpayer’s name or that the taxpayer received wages from an unknown employer may be the first tip off the individual receives that he or she has been victimized.

   The IRS has a robust screening process with measures in place to stop fraudulent returns. While the IRS is continuing to address tax-related identity theft aggressively, the agency is also seeing an increase in identity crimes, including more complex schemes. In 2011, the IRS protected more than $1.4 billion of taxpayer funds from getting into the wrong hands due to identity theft.

   In January, the IRS announced the results of a massive, national sweep cracking down on suspected identity theft perpetrators as part of a stepped-up effort against refund fraud and identity theft. Working with the Justice Department’s Tax Division and local U.S. Attorneys’ offices, the nationwide effort targeted 105 people in 23 states.

   Anyone who believes his or her personal information has been stolen and used for tax purposes should immediately contact the IRS Identity Protection Specialized Unit. For more information, visit the special identity theft page at www.IRS.gov/identitytheft.

2. Phishing
   Phishing is a scam typically carried out with the help of unsolicited email or a fake website that poses as a legitimate site to lure in potential victims and prompt them to provide valuable personal and financial information. Armed with this information, a criminal can commit identity theft or financial theft.If you receive an unsolicited email that appears to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), report it by sending it to phishing@irs.gov.

   It is important to keep in mind the IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels. The IRS has information that can help you protect yourself from email scams. More on Don’t Get Duped By The Dirty Dozen Tax Scams