“Why was I selected for an IRS audit?” There are several possible ways you may have been identified for IRS examination. The IRS uses a computer program that assigns a numeric score to every individual income tax return after it is processed. The higher the score, the higher the probability that an IRS examination will result in a change to your tax liability.
- If the IRS has a “reasonable indication” that there is a likelihood of unreported income based on records that focus on a taxpayer’s standard of living.
- Claims for a notably large refunds, information matching programs, or inspection of a related party’s tax returns during their examination may trigger an IRS audit for you.