Hello 

Ben, our tax partner, always holds my tax return until the first of October.

Of course, he files an extension.  An extension really doesn’t have a positive or negative effect on your chances of an audit, so it is a good idea to hold the return until near the end of the extension period.

The reason he holds all the returns is it gives him a chance to run the return against what the IRS has on file for the taxpayer.

The IRS receives all the W2, 1999, 1099R, and other tax filings for each individual and puts them in the individual’s computer file.

Ben has a power of attorney with me for the IRS and can look at all the documents the IRS has in my account. He can easily see if I have failed to give him a 1099R or some other document.

When you file your return, the IRS computers will immediately run your return against all the documentation they have on file for you.

The first and easiest flag for the IRS computers is a mismatch of the return and documentation on file.

You will immediately get a notice from the IRS telling you that you are missing something.  The assumption is if you are missing that then there might be more you are missing.  That’s a reg flag. 

With 87,000 shiny new IRS agents coming online, it is critical that you keep your return in the “milk toast” category.

One of the topics at the Tax Summit Ben and I are giving November 10 is how to cut your chance of audit. 

We are almost full, and this is the first email notice of the Summit.  Join us.  You have to register even if you have had the Tax Summit included with the work or products you have gotten from me and/or Ben.

Register here

See you there!