Ten Red Flags That Could Result in an Audit
It is a common theme among tax filers to want to reduce their tax bill. However — it is extremely important that you are still reporting factual information in your tax return to obtain a lower tax.
USA Today has published an article that lists ten of the biggest red flags that could result in an IRS audit (click on link for full details):
- High income
- No income
- Unreported income
- Business deductions that just don’t make sense
- Itemized deductions that are way above average
- Inflated rental property expenses
- Filing status and dependency issues
- Not enough income to support your lifestyle
- 100% business use of a vehicle
- A Schedule C that reports just enough income to maximize the earned income tax credit
Remember to maintain support for all income, deductions, and expenses that are included in your return, just in case the IRS comes knocking at your door.