A chiropractor in Lowell recently pleaded guilty to charges of bribing an Internal Revenue Service auditor. According to allegations in the complaint, the man paid $5,000 in cash to an IRS auditor to sign off on an audit.
The man had hoped that the auditor would ignore two false deductions made on his 2011 and 2012 tax returns. These business deductions were actually payments to several female patients who accused the chiropractor of inappropriate touching during their treatments.
In any tax audit, the IRS reviews financial and account information to make sure that has been correctly reported. An audit is also used to verify that the amount of taxes assessed is accurate. This post will discuss how the IRS selects returns to audit and the audit process.