How did they verify if someone committed fraud or tax evasion in the 1950s for example?
In: 19
The fact is the irs didn’t audit millions of tax returns a year. An audit is an in depth look that they do only if they find discrepancies with your filing. They do not audit every filing, they do a quick check against it vs what was reported per pay period. An audit they go back and check every detail in every filing and report for 7 years, a single audit can take a couple of months. There is no way they could audit every single filing.
This is also the reason most people who get audited are lower socioeconomic standing. Really wealthy people have accountants and lawyers that specialize in tax code enforcement, which makes it expensive and difficult to do so they can get away with a lot as long as they are not blatantly committing tax fraud. But if you make 40k to 250k and mess up badly? They are coming after you in a heartbeat, because they know you will just roll over and take it.
Latest Answers