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Summary: The IRS audits people who are late with their tax payments, people who do not file tax returns and people who have flagrant misuses of deductions. Discover how the IRS largely goes after individuals and businesses who take advantage of deductions with help from a registered financial consultant in this free video on IRS audits.
Patrick Munro's affinity for investing and financial matters began more than 20 years ago with business education and service throughout the ranks of the banking, insurance and...read more
"This is financial advisor Patrick Munro talking about an unpleasant topic to a lot of folks, but who does the IRS audit? The IRS is trying to develop a softer personality over time, but they are one of the most powerful US governmental agencies. If you don't pay your taxes, you're answerable to the IRS. So to avoid having discussions with the IRS, one would want to pay their taxes in a timely fashion. So that's the first red flag that goes up, is individuals that are tardy with their tax payments, or in fact do not file a tax return. Also, individuals that are having flagrant misuses of deductions that will pop up red flags for the IRS, they will start to dig into the return. In this difficult economy, the IRS has been charged with a goal to bring in more revenue and as a result, they're going after individuals in the business community that take advantage of deductions. So you must have a solid accounting practice with verifiable records and file your tax quarterly payments on a timely fashion; therefore you won't raise the ire of the IRS. This is financial advisor Patrick Munro talking about, "Who Does the IRS Audit?""