How does the IRS decide who to audit?

How does the IRS decide who to audit?

John Stoller, CPA (Certified Public Accountant) gives expert video advice on: How does the IRS decide who to audit?; How can I avoid an audit?; What is "tax fraud"? and more...

The reason for an audit varies. Most times you will be told it's just a random selection, the luck of the draw or some reason like that - but that's not really true. The IRS uses a very sophisticated scoring system to determine which returns to audit and which returns not to audit. If a complex system uses a different scoring which is based on your income, total income is reported on your return.