Federal Tax Audit Protection for 2011, 2012

Unfortunately, there is no way to completely protect yourself against being audited. The IRS randomly selects taxpayers throughout the year and performs an audit on their tax return. That is why it is so important to make sure your tax return has the most accurate and complete information possible.

Your risk of being selected as a taxpayer through the random selection process is very slim. If you have made mistakes or under reported income and so forth, flags are prompted on your return and then you are more likely to have the IRS audit you. The IRS will audit approximately 1% of tax returns each year.

There are online services that will help you reduce the risk of being audited by helping you make sure your information is accurate and by watching for those areas that prompt flags for the IRS.

For example, TurboTax has an audit risk meter; as you're preparing your tax return, the meter will change colors if an area is at risk of flagging the IRS. This meter is designed to show you a potential problem right away. This is based on common situations that are typically flagged by the IRS. TurboTax will also give you guidance to correct these areas.

The IRS changes the types of situations that they flag for each year. Online services try to anticipate the types of situations the IRS may be looking for. Preparing your taxes online can help you avoid costly mistakes made on your tax return.

You can try TurboTax for free and have peace of mind when it comes to filing your taxes.