Thursday, March 21, 2013

12 tax audit red flags

While I don't think #2 is a red flag per se, I pretty much agree these are some of the areas that can cause an IRS audit.  But how the IRS selects tax returns for audit is a well kept secret.  Nobody really knows.

http://money.cnn.com/gallery/pf/taxes/2013/03/21/tax-audit/index.html
  1. You have foreign assets
  2. Your ex wants revenge
  3. Your return has too many zeroes
  4. You have a home office
  5. You forgot some income
  6. You claim fishy deductions
  7. You're rich
  8. You say the wrong things
  9. You do a lot of 'work-related' driving
  10. You exaggerate donations  
  11. You own a money-losing business 
  12. You have a shady tax preparer