I am reading a book called 'How to survive a tax audit'. From what I gather, it seems the purpose of a tax audit is to find errors in your deductions so that the government can collect major taxes that are due.
For this reason the auditor is only interested in possible errors with large deductions so their time is justified in collecting the due tax.
Is this correct, or are audits also about checking compliance with tax rules. Is an auditor going to waste hours of your time trying to collect $50 in taxes because of innocent errors and misinterpretations of tax law? While I am sure there are some who do so, my guess is they are a small minority.
My reason for this discussion is so I can figure out how much time/money I need to spend to have my returns done correctly, vs mostly correct? If it will cost me more in tax preparer hourly fees to pay a tax I can guestimate, should I stall pay the tax preparer and have it done 'correctly'?