IRS: Trick or Treat for 2015?
On September 12, 2014 the Treasury Inspector General for Tax Administration (TIGTA) released its annual report on compliance trends.
In 2013 the IRS audit odds fell, with one (1) out of every 541 tax returns being audited (examined) in a IRS office, for a face-to-face interview. Looking forward to 2015 the odds of a face-to-face auidt interview, should remain the same or slightly decrease ("trick").
According to this TIGTA report, since 2010, the IRS staffing has fallen by about 10,400 employees ("treat"). Depending upon the election results of November 4, 2014, it is likely that IRS 2015 staffing will remain the same, or continue to be reduced.
For individual Form 1040 audits the IRS generally will look at the previous 2 or 3 years. This means that in 2015 the IRS will generally be auditing IRS Forms 1040 for 2012 and 2013.
Now is the time to ensure one has kept all income and expense records, and copies of Forms 1040, for 2011 through 2013, in case one is audited for a face-to-face audit ("trick").