Built-in IRS Auditor

A built-in IRS auditor is like having a tax expert inside your software. It helps you find possible tax problems before you file. This way, you can fix things and lower your chance of a real audit from the IRS. This guide tells you all about it.

What is a Built-in IRS Auditor?

A built-in IRS auditor is a smart tool often found in tax software. Think of it as a checker that looks at your tax return just like the real IRS might. It doesn’t work for the IRS, but it uses similar methods to spot things that could raise red flags. This tool helps you fix mistakes, make sure your income is right, and check if your deductions are properly supported. It’s like a pre-check before you send your return to the government.

Tax software with these tools uses complex rules, like those the IRS uses, to compare your return to others. They look for anything that seems out of the ordinary based on what the IRS expects. This helps you get your taxes right the first time. It gives you peace of mind knowing you’ve checked for common problems.

How a Built-in IRS Auditor Works for You

A built-in IRS auditor tool in tax software can be a huge help. It uses processes that are like the IRS’s own audit flags. It checks your return for things an IRS agent might question.

Here’s what these tools often do:

• Check for Mismatches: They compare the income you entered to the income the IRS expects based on commonly reported forms. If something doesn’t match, it warns you.
• Analyze Deductions: The tool looks at the size and type of deductions you claim. If your deductions seem too high compared to your income or job, it might flag them as a potential risk, similar to how the DIF score works.
• Spot Inconsistent Information: These tools look for errors that don’t make sense, like claiming the same deduction twice or entering numbers in the wrong place.
• Help with Documentation: Good software might remind you what documents you need to support certain deductions or credits, which is key if you face an audit.

By using these features, you’re essentially performing a self-audit before the IRS does. This gives you a chance to correct errors or gather better documentation. It significantly lowers your chance of getting audited or makes it easier to handle if you do.