Can filing for BK trigger an IRS audit

[plateump]

I notice that more than a few people on the forum have been audited or had that IRS come after them and demand payment for an error in filing either while in BK or after discharge. Does anyone know for sure that they re-examine your past returns since you are in a federal database for BK?

I'm just askin' coz... when I had my business, I had several really good years... followed by a really HORRIBLE year. Well, they had to give me a big refund that year. Of course, on my next good year, I got audited. I ended up paying out over $14K in interest and penalties. The IRS does not like blips or sudden changes.. I can attest to that.

Again... I'm just ASKIN'!

[tobee43]

the year we filed bk we rec'd the largest refund in our 46 years of filing. we rec'd it right before we filed and were advised to use and spend it immediately. we did on moving expenses. the irs nor the trustee had not a word to say about it. who may be more interested is your trustee and that is why WHEN you file, or what part of the year may trigger a trustee to want your refund. they usually begin looking approx in or about oct according to good sources on this forum.

there is much to be said about irs audits and what does and does not trigger them. many are just arbitrary. i know very few, actually can't think of one that was audited a year or two after filing bk.

[Pjmax]

I think being self-employed generally brings more scrutiny from IRS.

[andy158]

The IRS could care less if you filed BK. There is no correlation.

If anything drastic has changed from the previous two years, (i.e. substantial refund due, unusual expenses, the 'home office' deduction, etc.) that usually throws an audit flag.

My wife was an independent contractor for a health wellness company 3ys ago and claimed ungodly mileage one year and bingo! audited that tax year! On top of the BK we now had the IRS's sights on us. Very stressful! We kept good records and EVERY receipt and it all went ok.