If you think the IRS selects tax returns randomly for audit, you’re mistaken. Instead, the returns with the highest potential return on the time and energy they expend are those that end up on the audit pile. One factor used to determine this is a computer-generated score called the Discriminant Indicator System score, which uses data from similar returns to predict potential revenue that might be gained by auditing your company’s return.
Click on the PDF below to find out some common errors to avoid to minimize your company’s chances of selection for an audit.