IRS Random Audits

Discussion in 'Lawn Mowing' started by Charles, Jan 18, 2002.

  1. Charles

    Charles Moderator Staff Member
    Messages: 8,740

    The IRS will start doing random audits this year. I hope this means they will start doing something about all those lawncare people who run illegal out there. But this mean also that even the tax paying LCOs may be audited. I dont yet understand why this type of auditing would be better. They say it will cut down on unneccessary audits. Anybody got more info on it? How about just auditing people who dont pay anything? Now that would make sense to me
  2. Craig Jones

    Craig Jones LawnSite Member
    Messages: 120

    I believe they are just auditing Form 1040s. I do not think they will be going over schedule Cs. I will look for the information and try to post it.
  3. thelawnguy

    thelawnguy LawnSite Silver Member
    Messages: 2,411

    Random means just that. Legit biz, scrub, and Charles alike :alien:
  4. bruces

    bruces LawnSite Senior Member
    Messages: 648

    One reason the IRS does random audits is that is one of their means of developing statistic about trends, where mistakes & cheating are taking place, etc.

    They used to do audits where they check every single item on the return to gather this same information. They have suspended that program for now.

    Information from the audits they do helps them to decide what types of audits to concentrate on, thus the random audits.

    They will still continue to pick returns for audited based on certain information that might stand out on the return.

    As far as just auditing 1040's, not schedule C's, the schedule C is just part of the form 1040, if they audit a return, they might look at any part of it or all of it.

    They generally will have some area they are concentrating on but if they see something that looks out of line in other areas, they will look at those too.
  5. Richard Martin

    Richard Martin LawnSite Fanatic
    Messages: 14,699

    My local paper reported they they will mostly be concentrating on over $100,000 earners.
  6. HOMER

    HOMER LawnSite Gold Member
    Messages: 3,183

    Guess I'm safe then!:mad: :D :confused:
  7. Randy Scott

    Randy Scott LawnSite Bronze Member
    Messages: 1,915

    Let 'em audit. Doesn't bother me at all.
  8. heygrassman

    heygrassman LawnSite Senior Member
    Messages: 509

    The article that I read stated the lions share were going to be situations where AGI went from user 100K to over 100K. I also believe that was going to focus on non-schedule c's.
  9. geogunn

    geogunn LawnSite Gold Member
    from TN
    Messages: 3,010

    mr. jones--as a veteran of the IRS AUDIT, in my experience, I can assure you that you don't have a clue what you are talking about.

    if you have had better audit experiences than me then you are lucky.

    the IRS not only audits your 1040 but also any schedule you file as well as your lifestyle.

    and by that I mean if you are claiming taxable income and your lifestyle exceeds that income they don't stop till they figure it out.

    I live to hear all the breast beating about shoving it up the IRS ass in an audit. yeah right.

  10. awm

    awm LawnSite Gold Member
    Messages: 3,354

    kinda believe that man knows what he is talkin about.

Share This Page