15 Things That Make You a Target for an IRS Audit
There can be a fine line between not paying too much in taxes and setting yourself up for an audit. There are 15 situations that may make an audit more likely, which include:
- Having a large amount of wealth
- Not revealing offshore accounts
- Being a tax protestor
- Claiming large donations to charities
- Not including all income
- A home-based business losing profits multiple years in a row
- Claiming income loss for hobbies
- Not choosing a tax preparer wisely
- Having large business expense write-offs as an employee
- Having too clean deduction numbers
- Making errors when adding the numbers
- Bragging about your low taxes
- Making a potential whistle-blower angry
- Leaving blanks on the forms or other clerical mistakes
- Filing late or not filing
See, 15 Ways to Invite an IRS Audit, Forbes, May 3, 2014.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
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