It’s IRS Audit Selection Time …
Are You Feeling Unlucky?
by James S. LaHam, CPA, Senior Tax Partner
The IRS is making their audit selection from 2014 tax returns. The selections are generally made 15 to 18 months after April 15, 2015. If you don’t get notice of an audit by October 31, 2016 (the bewitching hour), you are generally home free. Officially, they can pull an exam up to three years after filing, so you are not legally out of the woods until April 15, 2018.
Extended returns are open for exam up to 3 years after the date the IRS received your return, but the IRS usually selects returns between 15 and 18 months after you file. Also, sort of relax because if your income is over $200,000 your chance of audit is 2.61% or 1 out of 38. If your income is under $200,000 your chance of audit it 0.78% or 1 out of 132. Regardless, if you get selected, we can take over the exam and you may never even see the IRS Agent.