Chance of IRS audit

[goingcrzy]

I was chap 7 discharged in Sept 2009. I just did my taxes with Turbo Tax (no money for a CPA this year)

I had to include form 982 because a cc decided to send me a 1099 for discharged debt.

The audit risk meter in Turbo Tax now has me at a high audit risk level. Plus my income is way off from previous years.

The IRS already went through my previous years right after I filed (coincidence?)

Will I get audited or do they generally leave BK people alone?

[NoMoreCards]

I don't think there is any way to tell what the IRS will do. Being as they went through all your stuff recently, they may not do anything. But it is like forecasting the weather and anything can happen.

For you I hope it don't of course. But I do find it interesting how many people on this board have issues with the IRS. It seems to be a somewhat common problem.

I wish you the best.

[Mensa1]

What would trigger the audit? Form 982, if properly checking the Title 11 disch box, makes all debt forgiveness non-taxable so it doesn't matter what your 1099 scenario may have been. The net result is 0 taxes due from debt forgiveness.

I have heard it best to attach a copy of your disch to the tax return, but no specific knowledge here of whether it helps or not. Surely if it is up for question whether a disch was obtained, even IRS could handle that one.

[goingcrzy]

Thanks! I wonder if they "review" filers taxes. It seems alot of people have the IRS bring up issues right after they file.

[goingcrzy]

Mensa-

That is a good idea - I am going to attach the discharge letter - just in case

I got nervous when I saw the Turbo Tax audit meter was so high - or course the next page was how to order their "tax audit defense" for 49.99