Get the scoop. Obtain a copy of your IRS master file. Write your IRS district headquarters and invoke the Freedom of Information Act. The file could tell you, months in advance, of a pending audit. Beware of red flags.
Lawyers take note.
Beware if you are an attorney, car dealer, commercial fisherman, mortuary owner, architect, or are involved in other businesses where much of the income comes in cash or where clever bookkeeping can hide or defer income. The IRS is shifting away from reliance on computer number-crunching in favor of sleuthing professional groups it suspects routinely veil income, Mr. Daily says. Don't antagonize someone who knows of any vulnerabilities in your 1040 form. If they turn you in, the IRS pays a bounty worth 10 percent of additional taxes collected. We offer them for your additional research.