No one wants to get a message from the IRS that starts out by saying "We are sorry." But this year, a new fraud detection system is flagging more returns for further review.
"The IRS is pulling these returns and holding these returns pending investigation," said tax preparer Dan Thomas with Jackson Hewitt.
The enrolled agent says the new computer system is catching inconsistencies, even if the taxpayer has done nothing wrong.
"I've got one lady that's extremely upset and she's going like, well why would they do that those are my kids and I said were they on your tax return last year, and she said no my husband claimed them, well she fit the criteria to have her return investigated."
"It kind of makes you a little more cautious, a little more nervous. If they flag people that haven't really done anything wrong, I don't think that's really right."
Right or wrong, it's one of the major changes this tax year that could affect thousands of taxpayers.
Another change affects those of you who bought and sold stocks or mutual funds in 2011. You'll have to fill out a brand new form.
It's all because of a new rule that mandates brokers now keep track of the purchase date and changes to your investments. That way when you go to sell, there's no question about how much capital gains you may owe.
For the self employed like insurance agent Bill Pace, another change is welcome news.
They'll be getting a 2% reduction on the self employment tax.
"I didn't know that. You've enlightened me, I appreciate that," said Pace.
Even if you're not preparing your own taxes, it's always smart to be up to date on new tax rules. After all, you're the one who the IRS holds responsible in the end.
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