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The information on Groklaw is not intended to constitute legal advice. While Mark is a lawyer and he has asked other lawyers and law students to contribute articles, all of these articles are offered to help educate, not to provide specific legal advice. They are not your lawyers.

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Eh, careful. | 199 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
Eh, careful.
Authored by: tknarr on Tuesday, January 15 2013 @ 03:15 PM EST

It depends. There's rules about the minimum payment you need to make to avoid penalties and interest. If what you pay each year equals at least 100% of your previous year's tax due or 90% of the current year's, they usually won't go after you unless they're pretty sure they can dig up enough to put you into the penalties range again. If you're filing Schedule C or other more unusual forms, or you've got a lot of non-standard credits and deductions that you don't have solid paperwork on, they may give it a go. But if you've got a relatively straightforward return with little chance they'll be able to get penalties out of you even if the audit succeeds, they normally won't waste their time. And even if you've got an exotic return, if you've been audited several times before and they've come up with nothing there's a good chance your file's been internally flagged "not worth the hassle". They're judged on recoveries, and they want to avoid spending time and effort on audits that won't yield any recovery unless there's absolutely nothing juicier in their In box.

[ Reply to This | Parent | # ]

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