The returns selected for audit had high deductions on a "C" usually with an 8829, always prime for an audit. Another had very high deductions on a 2106 which has made me look twice from day one. In the end I got quite a bit more on the 2106 than originally claimed.
The local IRS office has added quite a few auditors over the last few years. I also think they are training auditors who will later be transferred to other offices. I've had several with agents who have been with the service less than a year. Good location I guess, can't help it if I'm lucky.
As to the CP2000 notices there are several general catagories.
1. People who cashed an IRA out and redeposited the funds within 60 days. This was a pocket of clients from a financial planner who has been an excellant source of referrals over the years. They changed broker-dealers and the old firm refused to complete a trustee to trustee transfer so they had the taxpayer request an account liquidation without withholding and opened new accounts with the proceeds. The IRS didn't believe it when we said they were rollovers. Copies of account statments was all it took.
2. A couple of clients who didn't sell mutual funds they only exchanged them and failed to report the sale.
3. 1099 misc correctly reported on "C" but not matched by the IRS.
4. Dependency issues from two members of a family claiming the same child.
The local IRS office has added quite a few auditors over the last few years. I also think they are training auditors who will later be transferred to other offices. I've had several with agents who have been with the service less than a year. Good location I guess, can't help it if I'm lucky.
As to the CP2000 notices there are several general catagories.
1. People who cashed an IRA out and redeposited the funds within 60 days. This was a pocket of clients from a financial planner who has been an excellant source of referrals over the years. They changed broker-dealers and the old firm refused to complete a trustee to trustee transfer so they had the taxpayer request an account liquidation without withholding and opened new accounts with the proceeds. The IRS didn't believe it when we said they were rollovers. Copies of account statments was all it took.
2. A couple of clients who didn't sell mutual funds they only exchanged them and failed to report the sale.
3. 1099 misc correctly reported on "C" but not matched by the IRS.
4. Dependency issues from two members of a family claiming the same child.
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