Can The Irs Audit Taxes For No Reason At All?
February 10th, 2010 | 
Author: Im only 20 and my auntie said she paid some company 300 to file her taxes and i told her its free through turbo tax and she said the company she went through protects you against audits. What in the world, so if i turbo tax my taxes every year they can come after me for no reason??? Im highly confused.
Posted in IRS Audit Representation | 
Tags: Audit, Audits, Auntie, File Taxes, Irs Audit, Irs Taxes, Reason, Taxes, Turbo Tax, Turbo Taxes
The IRS can audit anyone that it wants to audit. A certain number of audits are conducted every year on a random basis.
The authority to conduct any and all audits is found in section 7602 of the Internal Revenue Code, which says that the IRS “is authorized to examine any books papers, records or other data which may be relevant or material” to “ascertaining the correctnes of any return” or “determining the liability of any person for any internal revenue tax.”
The company that “protects against audits” is not promising that you will not be audited. They are only promising that if you ARE audited, representatives from the company will go with you to the audit. Tax return preparers have no authority to stop an audit. The fact that you had someone else help you with your return might help alleviate penalties if you were subject to penalty. (That’s under section 6664(c) of the Internal Revenue Code.)
If your return is not complicated and if you know you’re being honest, there is no reason to spend $300 to have someone prepare it.
Yes, you are very confused.
The IRS can audit ANY tax return. Her tax prep company probably just means that they will assist and make good any mistake that THEY made on the return. Using (or not using) tax software or a tax prep company does not affect your chances of being audited. It’s the information on the return itself that matters.
To your main question – Yes, they CAN but they usually don’t bother unles they think they will be able to get more out of you, including fines
Tax preparers can promise to do a good job and they usually guarantee to go WITH you to an audit (which, I guess is some sort of “protection”) but they canNOT guarantee you won’t be audited.
no not at all. Your aunts may be complicated to do and she prefers to have a cpa sign the return as the preparer. That does not say she cannot and or you cannot be audited in the future
No i’ve never heard that, the IRS can audit you when ever they feel like it or have reason to.