Investing News Blog

Thursday, March 09, 2006

Escape the IRS Audit

Nobody likes red flags, especially when the IRS is involved, so when you fill out your tax return this year make sure you don't raise any red flags at the IRS by doing it wrong and making yourself stand out from the crowd. Apparently common things that will make you stand out are over kill on charitable contributions, to many deductions for the self employed, above average deductions, making six figures and careless omissions.
With the IRS increasing it's auditing budget recently, it's more important than ever to get your tax return right while making it blend in with the crowd, so find out more on how it's done.
5 audit red flags
"Think you know how the IRS picks its audit victims? You may want to reconsider that notion.
Even most accountants say they don't know how to crack the IRS' audit formula.
But with the tax agency auditing 1.2 million individuals last year and the IRS ramping up its enforcement spending in recent years, experts say it might be worth taking a look at your return to make sure you aren't making yourself a target for the tax man". CNNMoney
# Tax News