That isn’t true. They check all tax returns based on W2, 1099’s and other documents they receive from corporations that paid you money.
An audit is completely different from the automatic checks that make sure every bank record of interest and stock sale lines up with what you claimed on taxes.
If you miss any stock sale or any reported income, you will get a computer generated letter from the IRS for the amount you owe. If you pay too much by accident, you will also get a computer generated check back from the IRS.
I make a mistake every few years and get a bill with fine or a check from the IRS. I no longer stress about taxes because I know they will correct it for me in a few months anyway. The fine is small because I’ve luckily never made a big mistake. I’ve gotten back large checks on years I forgot I paid estimated taxes and overpaid my taxes.
That isn’t true. They check all tax returns based on W2, 1099’s and other documents they receive from corporations that paid you money.
An audit is completely different from the automatic checks that make sure every bank record of interest and stock sale lines up with what you claimed on taxes.
If you miss any stock sale or any reported income, you will get a computer generated letter from the IRS for the amount you owe. If you pay too much by accident, you will also get a computer generated check back from the IRS.
I make a mistake every few years and get a bill with fine or a check from the IRS. I no longer stress about taxes because I know they will correct it for me in a few months anyway. The fine is small because I’ve luckily never made a big mistake. I’ve gotten back large checks on years I forgot I paid estimated taxes and overpaid my taxes.