H. Taxpayer has prior Tax Deficiencies. This is especially true if the deficiency was discovered through an audit procedure. This is not a guarantee the taxpayer will be audited and if they are, the IRS is primarily concerned that the taxpayer is in conformance with law and have not repeated prior violations. I. Tips from Third Parties . It is surprising the number of audits that are conducted due to information provided to the IRS from third parties.
Many people think it is a good idea to tell everyone how they are beating the tax system.
Little do they know that all it takes is one phone call from someone to have the IRS knocking at the door. Once you receive an audit notice from the IRS, you should first read the letter carefully and see exactly what the IRS wants from you. Stay calm because the IRS may only need some simple information such as your signature on the return or a social security number. This type of audit is commonly used to correct minor mistakes. The IRS will send a letter to the taxpayer reporting their findings.