You’ve got a 50% higher chance of audit if your income goes above $100,000. The IRS considers anything over $100,000 as ‘high wages.’ Add in one of the following 11 additional audit triggers and your chances go up substantially.
- Large number of itemized deductions (that exceed undisclosed IRS targeted amounts),
- Tax shelter investment losses,
- Complex investment or business expenses,
- Own or work in a business which receives cash,
- Business expenses are high in relationship to income,
- Rental expenses,
- Prior IRS audit resulted in tax due,
- Complex tax transactions without explanation,
- You are a partner or shareholder in an entity that is audited,
- You give large amounts of cash to charity, or
- Someone has informed on you to the IRS.
Over the next few days we’re going to look at ways you can substantially lower your chances of IRS audit.
Tags: audit • audit red flags • audit tricks • avoid audit • avoiding an audit • how not to trigger an audit • how to trigger an audit • IRS Audit • tax audit
On May 25th, 2010 | 6:20 am
Andres said:
Someone has informed on you to the IRS?
So, how does that work? I call IRS and tell them my competition/rival/arch-enemy is not paying his/her taxes, and let them have it with that person?
My life now has a new meaning
On May 28th, 2010 | 8:35 am
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Andres, I am NOT getting on your bad side for sure.
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