Question

When auditing, the IRS typically selects which type of return?

Answer 1

Answer:

When auditing, the IRS typically selects those with high incomes.

Explanation:

The Internal Revenue Service (IRS) is a United States government entity charged with the sole duty of collecting taxes and regulation of laws with regard to income tax. The IRS was constituted by the then President Abraham Lincoln in 1862 and gets it's authority under the United States department of Treasury.

The IRS collects taxes from either individuals or companies provided they earn an income withing the United States of America. Individuals and corporations can file income taxes electronically by use of an internet enabled computer or even a smart phone.

IRS audits are usually done to confirm whether the tax returns filed are accurate. The audits can be done for a variety of reasons, but it is mainly done if the tax income filed are not coherent with the nature of the individual or company. The IRS audits are not done on every entity that files their income taxes, but only on a select portion of these entities. Those who have high incomes are usually selected for auditing.