getting audited

[pisces2473]

What are things that could make you a risk to be audited?

[pisces2473]

BUMP.

Seriously, no one knows anything about audits? I'm just nervous that certain bank activities as of late will give me a huge red flag come April 15.

[WorkInProgress]

Nope, no idea. I've never been audited, and I've never thought to ask.

[pisces2473]

I got a new job, making more money, but of course, I have to pay for COBRA, pay for more gas (new job is farther away) and some other weird bills have popped up--car repairs, for instance. Also, I'm moving, so I've had to come up with $1500 for my share of deposits and will soon have to pay a $900* credit card bill for our new bed.

I had to transfer money from my savings to checking to pay for all of this stuff and I got a letter from the bank about federal regulations when it comes to internet banking. I've made too many transfers, apparently. I've also had to cash in some savings bonds because of my last job not meeting my expenses. That's what I'm worried about.

I think, though, if someone looked at my W2's, they'd see why I'd need to move money around.

I just get worried about things.


*Well, I'll have to pay half of that, but the bill is still in my name for $900.

[cache]

I heard that asking questions on a message board about being audited raises your chances greatly. The IRS watches these boards, don't cha know?

OK, JK.

Serious answer:
Increase your chance of getting audited:
-Significant change in income year to year
-Significant/suspicious changes year to year(0 dependents one year, and 3 the next)
-Significant changes to your filing status(income stays the same, but one year you itemize deductions, and your tax payment goes down significantly)
-General demographics are audited at different rates. A single person making 25K a year in one job, doing the same as last year has a much less chance of being audited than someone making 100K, in 3 jobs, with 2 kids, and various taxable investments.

[WorkInProgress]

That doesn't sound like a big deal or a red flag to me, but I don't really know much about it.

[pisces2473]

I heard that asking questions on a message board about being audited raises your chances greatly. The IRS watches these boards, don't cha know?
Yeah, just like PETA! haha

Serious answer:
Increase your chance of getting audited:
-Significant change in income year to year
-Significant/suspicious changes year to year(0 dependents one year, and 3 the next)
-Significant changes to your filing status(income stays the same, but one year you itemize deductions, and your tax payment goes down significantly)
-General demographics are audited at different rates. A single person making 25K a year in one job, doing the same as last year has a much less chance of being audited than someone making 100K, in 3 jobs, with 2 kids, and various taxable investments.
Hmmmm, okay. I might be okay. I don't think I'd be surprised if I DID get audited though. Maybe I should call my accountant. My parents were audited when I was super little--my dad had gotten a huge raise and it was a red flag. Everything was OK.

Thanks for your help.

[cheshrcarol]

It is highly unlikely that you will get personally audited. Especially at your salary Jen. For one, the gov't keeps reducing the amount of auditors and the ones they do have keep an eye on people like big eBay sellers and other people with way more suspicious activity than you have. And speaking of eBay, THAT is a good way to get audited - if you sell on eBay, especially large amounts, make sure to claim the money on your taxes.

[pisces2473]

Thanks Carol! I just realized that you'd know a little more about this topic, duuuurrrrr. :razz:

[cheshrcarol]

Thanks Carol! I just realized that you'd know a little more about this topic, duuuurrrrr. :razz:LOL, you make it sound like I got audited!

Just for clarification, my mother's a large case agent with the IRS.

[pisces2473]

LOL, you make it sound like I got audited!

Just for clarification, my mother's a large case agent with the IRS.
Uh, yeah, whoops. I realized that too. Sorry Carol! LOL

[Skyblade]

Oh, I got that same letter about transferring money. I just keep a larger amount in my checking account now so I don't transfer so often.

[analogman]

I got a new job, making more money, but of course, I have to pay for COBRA, pay for more gas (new job is farther away) and some other weird bills have popped up--car repairs, for instance. Also, I'm moving, so I've had to come up with $1500 for my share of deposits and will soon have to pay a $900* credit card bill for our new bed.

I had to transfer money from my savings to checking to pay for all of this stuff and I got a letter from the bank about federal regulations when it comes to internet banking. I've made too many transfers, apparently. I've also had to cash in some savings bonds because of my last job not meeting my expenses. That's what I'm worried about.

I think, though, if someone looked at my W2's, they'd see why I'd need to move money around.

I just get worried about things.


*Well, I'll have to pay half of that, but the bill is still in my name for $900.

Nothing you posted sounds suspicious to me. Transferring money has more to do with frequency (I think the max is 6 times a month) than amount (unless you transfer over 10K).

Cashing savings bonds is not a problem because you have to give a lot of identifying information (and bonds have your SSN printed on them). If the IRS can't figure out you cashed in some Treasury bonds then it's the govt that has problems....

[pisces2473]

Nothing you posted sounds suspicious to me. Transferring money has more to do with frequency (I think the max is 6 times a month) than amount (unless you transfer over 10K).

Cashing savings bonds is not a problem because you have to give a lot of identifying information (and bonds have your SSN printed on them). If the IRS can't figure out you cashed in some Treasury bonds then it's the govt that has problems....
I wasn't sure if the cashing of the bonds would look weird to the IRS....

Thanks for the info!

[Ciderhillnh]

The government only sees your W2s and what you itemize...you can move money into 15 accounts they would have no way of knowing. Its not like a credit check.

[pisces2473]

The govt does see my 1099s. The interest from my savings acct, CDs and savings bonds goes on my taxes.

[Kitty]

My friend's sister got audited and she's lke 21 and a college student who only has a part time job. So random.

[Ciderhillnh]

Yes...but thats because those are reported.....your checking accounts, how much you pay on bills isnt on there.

One year I out 10K into 7 different accounts that have 1099....no audit.

[WorkInProgress]

My friend's sister got audited and she's lke 21 and a college student who only has a part time job. So random.

That must have been a quick audit.

[pisces2473]

Yes...but thats because those are reported.....your checking accounts, how much you pay on bills isnt on there.

One year I out 10K into 7 different accounts that have 1099....no audit.
No, I know that my checking acct/bill stuff isn't on my 1099. I'm talking more about how quickly I've liquidated assets--that's what I thought would send up a red flag.

[Ciderhillnh]

Not at all...people move around money all the time. It has to be something out of the ordinary to make them pay attention......change in claim, change in dependents......

[analogman]

No, I know that my checking acct/bill stuff isn't on my 1099. I'm talking more about how quickly I've liquidated assets--that's what I thought would send up a red flag.

I think you will be fine. If not, my wife and I are getting audited next year (though knowing that probably won't make you feel much better if you get audited too). We are doing some serious money moving and liquidating assets to buy a house. I am not worried about an audit so you shouldn't either. :huge:

[pisces2473]

I'm sure I will be fine, too. I just worry! Yeah, if every home buyer was getting audited after buying a house, the IRS wouldn't worry about anyone else. haha

[kdhmps]

Self-Employed people get audited a lot. REALTORS for example, are frequently audited. And low-income people like me!

[GoogleGirl]

I also got a letter saying I was making too many transfers from savings to checking accts. I'm not really worried though since I have nothing to hide. Just needed enough money to pay bills and stuff each month. And no one really tells you that you can make too many transfers from one acct to the next until you actually do it. At least, that's my case.

[pisces2473]

I also got a letter saying I was making too many transfers from savings to checking accts. I'm not really worried though since I have nothing to hide. Just needed enough money to pay bills and stuff each month. And no one really tells you that you can make too many transfers from one acct to the next until you actually do it. At least, that's my case.
I hate banks. It MY money--I hate being told what I can and can't do with it. And the fees! I should just stick it in a coffee can buried in my backyard.