Tuesday, April 15, 2014

A Little Good News for Tax Day

Did you send your tax return in today? There might be less reason to be nervous about it than there has been in recent years. Because of budget cuts, the IRS says it has the capacity to conduct the fewest audits than at any time since the 1980s.

The number of audits being conducted was already pretty low. The IRS says it audited less than 1 percent of all returns it received last year. That was the lowest audit rate since 2005.

But don't think that gives you carte blanche to put whatever you want on your 1040. If you report much less income on your personal return than your employer has reported to the bureau, the IRS's computers will pick that up - without any personal intervention from an auditor.

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