(KMOV) -- A recent report in the Wall Street Journal said that the mounting federal deficit could possibly increase the odds of residents being audited by the Internal Revenue Service.
According to the report, the IRS is under intense pressure to collect more money this year. It also points out that not only is the IRS planning more audits, but the agency has targets - namely, taxpayers in high brackets and the self-employed who deal with large amounts of cash.
But if cash is what the IRS is looking for, then a new study from a group at Syracuse University might indicate the IRA is targeting the wrong groups.
The findings reveal that audits of large corporations are down in the last few years, and are in fact at an all-time low. Using what the group calls a "perverse quota system," the IRA is now going after the "little guy" and getting less money.
The first thing to do if the IRS decides to audit you, is to stay calm. D R Sullivan and Company of Clayton recommends calling your tax preparer or finding representation. Also, hold on to tax records and receipts for at least six years.
The IRS had no comment on the report that audits might be up this year to help offset the federal deficit, but they did comment via email to say they are cracking down on unscrupulous tax preparers to help protect tax payers filing fraudulent returns.
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