IRS Audit FAQ

Questions:

• What are my chances of getting through an audit without owing additional taxes?
• I am being audited and the deadline for filing this year's return is fast approaching. Should I file?
• I am being audited and I haven't heard from the auditor for months. What can I do to get the audit over with?
• Do I have to let the IRS into my home?
• The auditor is impossible to get along with. What can I do?
• Can the IRS take my house?
• Can I make a deal with the IRS to pay less than my tax bill?
• Can I challenge the IRS if I get audited and don't agree with the result?
• How likely am I to get charged with criminal tax fraud?

Answer:

How likely am I to get charged with criminal tax fraud?

Not very. Fewer than 2% of us are ever investigated for tax fraud. And if you are, the likelihood of a civil fine or criminal charge is under 20%. The unofficial minimum amount of taxes owed before the IRS will file criminal fraud charges is over $70,000, in cases involving at least three years of fraud. To some extent, whether you are charged depends on your line of work. Most of those prosecuted for tax fraud work in organized crime or are public figures. For more information, see Nolo's article Negligence Versus Tax Fraud: How Can the IRS Tell the Difference?

For detailed information on all aspects of IRS audits, see Surviving an IRS Tax Audit, by attorney Frederick W. Daily (Nolo).