Suggestions for Avoiding a Tax Audit IRS
Avoiding an Income Tax Audit
It’s no secret that nobody likes paying income taxes and of course, no one likes to get audited. While the vast majority of the tens of millions of income tax returns that get filed every year are processed by the IRS without issue, on occasion, the system will mark a particular return for an audit. This involves meeting with an IRS agent and discussing the details of that particular tax return. While there is no published list of things that might trigger an audit, and many of them are simply selected randomly as part of the way the IRS operates, there are a few things that can trigger an audit and you should be careful when filing your return to avoid some of the traps listed below. IRS
Income levels – We all want to earn a lot of money, as having a lot of money simply makes life easier than being poor. On the other hand, those taxpayers with high incomes are simply more likely to be audited than those with lower income levels. There are several reasons for this; high earners are more likely to be itemizing deductions and some of those can invite scrutiny. In addition, since high earners are also more likely to be paying higher taxes, they’re more motivated to find ways, legal or not, to lower their taxable income.