Keep The IRS Away By Avoiding These 10 审计 Red Flags
Wondering how can you avoid being flagged for an audit? 意图d on to discover common audit red flags and what to do to ensure you don’t make these 10 audit-triggering mistakes.
It’s hard to believe the year is almost over. As autumn quickly approaches, so does tax … and then audit … season. 对纳税人和企业主来说, few things provoke more anxiety than the idea of being audited by the IRS. 特别是现在. The world of tax compliance is changing rapidly post-COVID and there are more questions than answers. Regardless of the unk现在ns, compliance should always be your top consideration. This is especially true when it comes to filing your personal taxes as well as your business taxes.
Experience tells us that certain red flags can make you more likely to be audited by the IRS during a normal year. 现在, 不幸的是, these red flags are likely to carry more weight as the government is looking to bolster its coffers. We’ve pointed out 10 audit red flags below. If you think you might be at risk, consider meeting with your 意图 advisor as soon as possible.
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10 Things To Consider When Filing Taxes To Avoid An IRS 审计
If red flags are raised, you may be at risk for an 国税局的审计或税务通知. Here are some common red flags to be aware of and watch out for:
一般报告不一致
The IRS compares all the forms your business submits to them with your business’s Form 1040. If there are inconsistencies between the forms, it will likely generate a tax notice or audit.
申领低收入
If your tax forms show that you’re making significantly lower income than others in your profession, the IRS may have reason to believe you’re not reporting all of the income you’re bringing in.
Using Round Numbers Or Unusual Currency
If you report rounded numbers versus actual numbers, the IRS may have reason to suspect you’re not accurately reporting. An example of this usually might come from mileage expenses. 除了, 现在, 使用cryptocurrencies, 比如比特币, could raise suspicion if it is reported in large amounts.
申索高额慈善捐款
你骗不了国税局! The IRS has a good idea what the average person in each tax bracket donates. If you claim amounts above this average, you may be flagged for an audit.
申报高收入
If you report an income upwards of $100,000, you’re much more likely to be audited than those who make less than this amount.
不一致的联邦 & 州纳税申报表
If your federal and state tax returns don’t match up, this may cause you to be at risk of an audit or tax notice.
收入急剧变化
Did you have a $10,000 jump in income in the last year? Then this might raise a red flag to the IRS.
申请高额分项扣除
If you report several high itemized deductions on your tax forms, you might be in for an audit. This could raise a red flag for the IRS. 因为这与你的收入水平有关, the IRS k现在s what the average taxpayer in your tax bracket gives to charity, pays in real estate taxes and mortgage interest, 并支付医疗保险.
是自己创业
Simply put, if you’re self-employed, you are more likely to be eyed for a possible audit. The IRS k现在s there is more of an opportunity for claiming personal expenses or deducting a “hobby loss” – an activity that is presumed to be for-profit if income exceeds expenses for three or more out of five consecutive years. Even something like claiming a home office deduction because you work from home could leave you vulnerable for audit.
过多的娱乐扣除
虽然玩得开心总是好的, having too many entertainment deductions can raise red flags for the IRS. Make sure to limit your entertainment deductions and keep thorough records of your deduction history.
需要帮助填写你的1040表格?
While these aren’t the only red flags that may cause you to be audited, these are the more common situations to watch out for. If you would like to k现在 more about how you can prepare for tax and audit season, 联系你的意图顾问, 给我打电话，或完成本摘要 安全的赌博软件 form to be connected with a qualified CPA in your area.
By Ted Klimczak, CPA (麦地那 CPA 公司)
Looking for more tips and insight to help you avoid an audit? Or some ideas to help you stay off the IRS audit list? Check out these additional resources:
[ARTICLE] Your Solo 401(k) Plan May Be On The IRS’ 审计 List
[ARTICLE] Income Tax Return Examinations Of High-Income Individuals To Begin July 15
[ARTICLE] Are You Aware Of These 5 建设 Industry Risks?
This article was originally published in 2014. It was recently updated to reflect new information and insight.