What’s Your Chance of Being Audited?

The IRS has updated its audit guidelines, including the section on audit selection. It simplifies, or tries to simplify, the answer to one of life’s greatest mysteries - what are the chances of you being selected for a tax audit?

There are no doubt triggers such as outsize or oddball deductions that are well above the average for your tax bracket.

However, returns may still be selected for audits even if there’s no such red herring or error. You could end up being audited due to any of the following:-

-          Lousy Luck - The system randomly picks returns based on a statistical formula which has nothing to do with what’s in the returns.

-          Document Matching – If the information you report doesn’t match what’s on payor forms such Form W2 or Form 1099.

-          Business Partners – If your business partners of investors with whom you have extensive transactions have been selected for an audit, then you may be roped in for one too.

So let’s say you have done everything by the book and there’s nothing wrong with your returns, but there’s still a chance that you could be audited. What do the statistics say about this?

Well, depends on the adjusted gross income you show. According to an analysis published by, the lowest chance (0.73%) of being audited is in the $25,000 to $50,000 range.

It’s still at or below 1% for the expanded range of $25,000 to $200,000. It goes up to varying degrees as your income exceeds or falls below this range.

For example, if you show some income less than $25,000, there’s a 1.22% chance that you could be audited. If you show no income whatsoever, it’s all pain and no gain because your chances of being audited actually goes up to 3.42%.

At the other end, it really starts climbing after $5 million. For those with incomes in between $200,000 to $500,000, the chances of being audited are still only 2.66%.

It’s 5.32% up to $1 million and goes up marginally to 5.38% for those with incomes between $1-5 million.

For those with incomes in between $5 to $10 million, there’s a one in 20 chance that you’ll be picked for an audit from among this group.

For those whose incomes exceed $10 million, the chances of an audit go up to one in three.

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Audit reveals Pentagon credit cards used for gambling, hookers

If you’re looking to hide some spending habits — especially if those habits include gambling and escort services — it’s probably a good idea to use a credit card that your spouse doesn’t have access too.

But it’s definitely a bad idea to use a credit card issued by the Department of Defense.

An audit of “Government Travel Charge Transactions” from the DOD’s Office of Inspector General completely debunks the “what happens in Vegas stays in Vegas” slogan.

It revealed a significant number of Pentagon employees were charging their extracurricular activities in Las Vegas and Atlantic City, according to Politico.

A Pentagon official briefed on some of the findings stressed that the federal government did not necessarily pay the charges; holders of the cards pay their own bills and then submit receipts to be reimbursed for expenses related to their government business.

The official said that the employees may have used the government cards for gambling and escort services in order to shield the charges from spouses.

This wasn’t an official investigation, merely an audit of the credit card system. As a result the most likely result in employees being reminded that using a government credit card for these purposes — even if they end up paying for it out of their own pocket — violates policy.

It’s not the first time government employees have been caught with their pants down.

In March, a watchdog report revealed that Drug Enforcement Agency agents had “sex parties” with hookers hired by Colombian drug cartels.
Revenue Canada targets birdwatchers for political activity

A small group of nature lovers in Kitchener-Waterloo Region in southern Ontario enjoy spending weekends watching birds and other wildlife, but lately they’re the ones under watch — by the Canada Revenue Agency.


Earlier this year, tax auditors sent a letter to the 300-member group, warning about political material on the group’s website.

The stern missive says the group must take appropriate action as necessary “including refraining from undertaking any partisan activities," with the ominous warning that "this letter does not preclude any future audits.”


The group, with annual revenues of just $16,000, has also had a guest speaker to talk about the oilsands, and has publicly defended the Endangered Species Act from being watered down.

All this audit is saying to me is

  • Fuck moving out
  • Fuck having a family
  • Fuck going to uni
  • Fuck being on a minimum wage (capped index at CPI MINUS 1% per year; ie making everything even more unaffordable)
  • Fuck being disabled even if you have a modest house
  • Fuck paying uni fees back (oh yeah, that’s a nice little sneaky one, moving it from CPI to whatever the loan is set at, close to 7-8% in all likelihood)
  • Fuck wanting to do science or working within the CSIRO
  • Fuck being indigenous
  • Fuck being given grants

Seriously though, does anyone other than big business win? 

Rand Paul Files Bill He Claims Will Audit Fed - Instead Makes Congress Able To Crash Economy

Rand Paul Files Bill He Claims Will Audit Fed – Instead Makes Congress Able To Crash Economy

If you listened to the right-wing blogosphere, Rand Paul’s new bill, S.294 was the end-all be-all of government actions this past week. The Ron Paul fans must be absolutely salivating at the call to audit the fed.

Of course the problem is that the Federal Reserve is audited on a regular basisby an independent, outside firm, with the audits verified by Congress. Which means, since the Federal…

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"Audit the Pentagon Act of 2014" - the only federal agency that has never been audited. It's Time.

GOP loves to hammer on fraud and waste in government, yet it seems the Pentagon is the only federal agency that never is audited. Of course it takes a progressive like Barbara Lee (Oakland, CA) to call for legislation “Audit the Pentagon Act of 2014” – I say we all should help her out and get this petition circulating.

Fociakadémiai audit: a nyilvánosság „nem szolgálja, ugyanakkor feltételezhetően negatívan befolyásolná a projekt sikerét”

Közérdekű adatként kértük, de nem kaptuk meg az MLSZ által a labdarúgó-akadémiák szakmai működéséről készítetett auditjelentést. Közpénz és közfeladatok vs. üzleti titkok és egy szakmai audit, amit valamiért veszélyeztetne, hogyha kiderülne, hogy milyen hiányosságokat tárt fel. Megkaptuk – és most közzé is tesszük – viszont azt az összefoglalót (PDF), amelyben a jelentést készítő tanácsadó cég mutatja be az audit részletes, de az egyes akadémiákra vonatkozó adatokat nem tartalmazó megállapításait.

"I need a plunger to my room, the toilet's clogged with tissue. It was like this when I got in here, wouldn't housekeeping flush it or something?"

Yeah. I’m sure that your toilet has been clogged since you got here considering you checked in two days ago.
(Where have you been going this whole time?)
And I’m even more positive that while scrubbing that toilet clean, housekeeping just so happened to overlook it being stuffed with tissue and filled to the brim.

Just tell me you need a plunger and go on with your life. Idgaf if you clogged it or not.

I have no words to say. But here it goes.. This busy season was really a challenging one. I thought i was well prepared. I thought that in the way i chose to do things, i was being efficient. I thought that i have gotten all the good traits from my superiors. But i was too busy living in my ideal world. I forgot reality. I forget that we are not all the same. I forgot that we all learn in different ways. Yes. It was all my fault. I have high standards. I may not be the brightest associate. I dont have all the right answers. But i know. I can be at par with the others. Not because im so competitive at what i do. But because i love what i do and i enjoy every single bit of it. I did not envy the other associates with their accounts. I was completely contented with what i have. But it was my thirst for learning that cost my goodwill. I made it a point in my first year to always be there. I built that goodwill. Never complained and always a follower, i found my voice along the way. But 2nd busy season came and it all went downhill. I just wanted to learn more. I want a challenge. I am my own competition. I didnt care if the others were not exerting as much effort as i was. I only wanted to make myself better. But things happened. Conflicts and misunderstandings. Judgments were passed. Assumptions were made. It saddens me that it was not a fair fight at all. I lost the will and thrive. I began to notice the effort i was exerting compared to others. Clearly, it was not motivating at all. I may be the most obnoxious person, but i only stand firm in what i believe in. On how i do things. On how i like to get things done. And if youre not on board, dont bother asking, cause i will just mock the way your doing things. Unless you can prove that im wrong. And im open to that. Thats how ill learn. So in short. This busy season was the complete opposite of my first one. I lost friends along the way. I lost the value of trust. Some friends came back. But the other relationships are still ruined until now. I lost all hope in that promotion. I was wondering why the other associates are uncertain with theirs when i was just thinking that it’s an automatic thing as the batch before us, all got promoted. Then it hit me. That possibility. That i will not get promoted. I realized all the efforts wasted these two years. But then. It came. We were all promoted. Close enough. But i did not feel anything. It has yet to sink in. But i feel indifferent. I was not looking forward to things. I know that with the ruined working relationships at work, things will never be the same. All can say is, it’s not my fault. And i dont have any problem with their so-called relationship. But please. Dont make it look like as if im the one who’s imposing restrictions with interactions. To begin with, i was not the one initiating the convos. Nevertheless, in terms of mngr staff convos. Things did change. And my side of the story was not heard. Oh well. I really dont know. But days before. Things got too normal. Which was weird and i even asked a friend of mine if she had anythibg to do with it. But i guess, whatever happened, im happy that things are slowly going back to normal. But one thing is certain, i will never forgive her nor talk to her. It’s something that i cant do. It’s as if giving the devil a chance to wbter my life again. I can never understand how it all happened. Srsly. He was only a guy. And im not that desperare enough. I did not love him, if thats what they were all thinking. Srsly. It was only an attraction. But whatever that is. It’s all gone. I refuse to think of him of other things that he did that she got away with. I refuse to taint that image. He was an abacus awardee at some point. I respected him and admired him for that matter. Nothing further. Cause additional thinking abt things will make me hate him. And i dont want that. But he really pushed my limits with our client. I didnt know if the issue was vel or with his girl. But everytime i think abt those things. I get pissed. But theres nothing that i can do. Whatever that is. I wont be thinking abt it anymore. I even lost hope on the hope that he may be may main manager. But i guess thats it. I just have to build something for myslef. It’s just that, i can never understand how the hell happened between the im interested in you part to the wait for the right time part. Cause somewhere along the way, happened a foul play. And i dont care if their lovestory continued. I care on the fact that i was okay with my life. But he came in and involved me in the equation. Well. They’re happy and i dont even care. Not even an ounce. Im not happy for them but im not wishing for bad things to happen. All i know is, their relationship is doomed for the reason that it was built on lies. Well. I dont care. Thats how i see things. They didnt even cared to understand my side. They shut me off. I know im on the losing end. I want my friends to back me up. But i cant. Cause we are all in one circle. Friends of friends. How to weigh things. How to draw the line. Where to place loyalty. Aww. I can never understand. And again, this is one clisure that i will bever get. I can never wipe the slate clean. Cause of the reason that i was deceived and used. Even friendships were tested and still going through repair as of the moment. Well, moving on. And with all that happened. I know that i will neverget an equal chance. I never expected for a new client. I also learned my lesson not to ask anymore. I was just contented. But this came. I am now a part of the first audit client of the firm. Srsly. How better can things get. Really. I dont know how. But He did things. He made this happen. Thank you, Lord for this. For this present. The other associates wanted this. I did not asked for this. But it was given to me. And now im honored and challenged. I want to accommodate all things. I dont want to let go of my first audit clients except vel. I want to remain intact with them plus this major new client. Im glad that i was reminded why i learned to love what i do. I will be forever grateful and i will really do my best. I have this goal in mind when i got promoted. I did not know how to achieve that goal. But i think, with this client, i can. I shall push the limits. And ill do all things possible. I have that goal in mind and i want to achieve it. Lord, this wont be possible if not because of you. You revived my desire. After all the hardships and nonmotivating things that happened in the last months. All my efforts were rewarded. You saw them all. Here i am, thanking you. And i will take this as a challenge to myself. I can do all things. I know that you believed in me, and with that belief, i can do all things. Thank you Lord. For everythjng that ive been through, Your timing is always right!!!

Rarely do I have a work week as incredibly hectic as this! I usually have this audit business down, but this week was different. New auditors, new layout, and a LOT of disorganization on the part of some…who shall remain nameless. It’s been a crazy one and I’m SO ready for Friday to be here so I can get some actual work done!

Good thing next week is equally crazy in BOTH work and home life! Oy!

What Hockey and Corman did today was try to scare us with a number of things they won’t enact, or won’t get through the Senate and be discarded. What they did was cast not just the Abbott government but the Baird, Newman, Napthine and Giles governments and the Liberal Party, into outer darkness, perhaps, forever.

Because they thought they had enough respect, enough stature, enough mana in the wider community, the nation, the world, to dare this nonsense, and they didn’t. They already seemed, after the single aberrant knight (there will never be another), and the search in the wrong ocean for the vanished plane, and the twenty-four billion dollar fighter-bomber that can’t win any imaginable war on any planet we might be on soon, a little crazy. And to make war, after that, on on every ingredient of Australia, and Australia itself (the Federation was broken, they said, and that means Australia was broken) was, on the face of it, barking mad.

Where did they get the idea that we as a nation were so keen to get back into surplus that we’d give up our child’s education, and our mother’s comfort in old age? Who told them we were like that?