All of us want to file the most accurate tax return possible. Yet, no matter how accurate the return, there are several red flags that can increase your chances of being audited by the IRS. The top issues that raise the attention of the IRS include:
- Large Amount of Itemized Deductions Compared to Income
- Self-Employment Income
- Office In Home Deduction
- Automobile Expense
- Meals and Entertainment Expense
- Cash Basis Business
- Large Charitable Contribution Compared to Income
You can improve your chances of successfully challenging an audit by maintaining receipts and records that show you are reporting accurately. Let us know if you have any questions about this topic or another concern about your individual or business tax return.