Monday, March 17, 2008

LA Times: How to Avoid a Tax Audit

Yesterday, I was quoted in an article for the Los Angeles Times on IRS tax audits. Below is a short quote from the article, to read the full version check out "How to avoid a tax audit, and how to prepare for one."

You can take some comfort in the fact that audits are remarkably rare, hitting about 1% of taxpayers each year. However, the rate is rising, and if you happen to pull a few audit triggers, your chance of getting that ominous letter or phone call from the Internal Revenue Service can soar tenfold or more, experts say.

"I am hearing about more audits than I ever have," said Roni Deutch, a tax attorney in Northern California who has been practicing for 17 years. "People will try to alleviate your fears and tell you that an audit is not a big deal. It is a big deal. It's like having a root canal without Novocain."

The number of returns audited by the IRS jumped 7% last year to 1.38 million, up from 1.29 million in 2006.