Filing taxes can be a daunting task, and the fear of an audit can make it even more stressful. If you’re considering using TurboTax to prepare your taxes, you may be wondering if it increases your risk of being audited. This article will explore the factors that the IRS considers when selecting returns for audit and how TurboTax can help you avoid common audit triggers.
Understanding IRS Audit Selection
The IRS uses a variety of criteria to select tax returns for audit, including:
- High income: Returns with high incomes are more likely to be audited, as the IRS believes that taxpayers with higher incomes may be more likely to underreport their income or take excessive deductions.
- Complex returns: Returns with complex tax situations, such as those involving multiple income sources, business expenses, or itemized deductions, are also more likely to be audited.
- Errors: Returns with errors, even if they are unintentional, can trigger an audit.
- Random selection: The IRS also randomly selects a small percentage of returns for audit to ensure that all taxpayers are being treated fairly.
How TurboTax Can Help You Avoid an Audit
TurboTax can help you avoid common audit triggers by:
- Guiding you through the tax code: TurboTax’s user-friendly interface and step-by-step instructions help you navigate the complex tax code and ensure that you’re reporting your income and deductions accurately.
- Double-checking your return: Before you file your return, TurboTax double-checks your calculations and flags any potential errors. This helps you identify and correct any mistakes that could trigger an audit.
- Providing audit support: If you’re ever audited, TurboTax provides access to audit support resources, including one-on-one guidance from a tax professional.
Additional Tips to Avoid an Audit
In addition to using TurboTax, there are a few other things you can do to reduce your risk of being audited:
- Keep good records: Keep all of your tax-related documents, such as receipts, bank statements, and investment records, in a safe place.
- Be honest and accurate: Don’t try to hide income or take deductions that you’re not entitled to.
- File on time: Filing your taxes late can increase your chances of being audited.
While there is no guarantee that you will not be audited, using TurboTax can help you reduce your risk by ensuring that your return is accurate and complete. By following the tips outlined in this article, you can increase your chances of filing a successful tax return and avoiding an audit.
FAQs
- Does TurboTax guarantee that I won’t be audited?
No, TurboTax does not guarantee that you will not be audited. However, by using TurboTax, you can reduce your risk of being audited by ensuring that your return is accurate and complete.
- What should I do if I’m audited?
If you’re audited, you should contact the IRS immediately. You can also contact TurboTax for audit support, including one-on-one guidance from a tax professional.
- How can I reduce my risk of being audited?
You can reduce your risk of being audited by keeping good records, being honest and accurate on your tax return, and filing on time.
Former IRS Agent Explains the Number One Reason You Get Audited, Its Your Audit DIF Score.
FAQ
Can you get audited with TurboTax?
What is the downside of TurboTax?
Are you more likely to get audited if you file electronically?
Can I get a tax audit from TurboTax?
Tax audits happen — the IRS sends you a letter requesting clarity on your form. Chances are, you won’t be audited. But if you are, TurboTax offers free audit support to most filers. That said, you’ll have to go through the process yourself — a tax professional won’t handle it unless you pay TurboTax extra for audit protection.
Is TurboTax audit defense worth it?
As someone who uses TurboTax annually, I appreciate its design, workflow, and access to CPAs. However, paying extra for Audit Defense doesn’t provide significant value. 2. **Long Answer**: It
Does TurboTax offer audit protection?
The Short Guide To Audit Defense Policies Audit protection plans, such as TurboTax’s Audit Defense, provide advice and takes care of correspondence with the IRS in the unlikely event you are audited. Most people don’t need this service, but is the peace of mind it buys worth it in your case?
What is the difference between TurboTax and audit support?
Year-round answers to your audit questions. Assistance with what to expect and how to prepare for an audit. The main difference between these products is the level of dedicated help you will receive. Notice that TurboTax’s Audit Support provides one-on-one audit guidance from a trained professional and helps with preparing for an audit.