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You can reduce the chances of being audited by avoiding certain "red flags"
that can raise suspicions about your tax return, such as:
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Claiming deductions for charitable donations that are not proportionate to
your income.
-
Claiming deductions for travel and entertainment that are not
proportionate to your income.
-
Under-reporting income (for example, taxi drivers or restaurant employees
not reporting or under-reporting tip income).
-
Claiming itemized deductions of more than 35% of gross income.
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Deducting home office expenses while working in an office.
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Claiming bad debts.
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Paying wages to children or a spouse, splitting income among relatives, or
lending money to family members
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Making errors on personal information (misspelling your name, wrong
address, etc.).
You can decrease your chances of being audited by:
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Being honest about your deductions and income.
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Keeping meticulous records.
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Having your tax return prepared by competent professional.
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Filing your return electronically (which eliminates data entry errors at
the IRS).
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