ours audits never started as flagged charts- they are randoms as required by OIG compliance protocol.cowboycwr said:Seems to me that any with flags would fall into the category of errors causing an audit not the random category. But it is a government agency so maybe I am thinking to hard on the meaning of random.4th and Inches said:cowboycwr said:Yes. As I have said several times now I get that part.Oldbear83 said:Well, there is a section where you tell the IRS whether you prepared your own taxes, or someone did it for you. So it wouldn't be hard to sort out the ones that mean more work for the auditor.cowboycwr said:That part I understand but is the IRS able to tell a return is done by a CPA before they start the audit process? Like is it flagged in their system in a way that they know to skip over it? If so that makes it even less "random" then they claim it is supposed to be.4th and Inches said:CPA are more likely to understand tax law and how to apply it. People who dont understand tax law and how to apply it are more likely to make a mistake and are more likely to be bullied into admitting they messed up whether they did or not during an audit.cowboycwr said:Why would you think that?4th and Inches said:I would bet that a significant number of audited tax returns are ones that are not done by CPAscowboycwr said:
The poor are 5 times more likely to get an audit according to IRS numbers.
https://www.cbsnews.com/news/irs-audit-eitc-five-times-as-likely-to-get-audited/
And the number of audits on people over $1mil or $10 mil has DROPPED over the years.
Tax returns done by CPAs will absolutely be audited but CPAs win tax audits more than people who dont have CPA background.
Those guys are looking for wins, they will take the easy wins all day long.
But the IRS states the reasons they audit like for errors, missing income, etc. The IRS also states they do random audits. If they are excluding returns done by a professional then that is not random or at least only random among a select group.
When I used to do healthcare chart
Audits- there were certain flags we looked for.. if they were there then we dug deeper. If more flags popped then we really dig into everything that provider was doing/billing. One bad chart would lead to a dozen more charts done by that provider and staff members. If those had issues, we halted billing from that and pulled all the charts. Auditors by nature pull threads and see what unravels.
I am sure IRS has an internal system for their randoms that if they clear a base check, then they move on.. if flags appear, they dig.
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