BrittanyS
Expert Alumni

Self employed

Yes, the return goes through a software screening with the IRS; the software checks figures to ensure the reported income matches what is listed in the software.  For example, if you receive a W-2 and the income was reported under other income instead of W-2 income, the software would flag this because the return doesn't show W-2 income.  Or if the 1099-NEC lists $40,000 income but income reported as other or Schedule C is $4,000, it would be flagged.  The computerized audit checks figures for matching records that were provided to them.  

 

@Gavmister 

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