Our Blog

Posts

The chance of being audited is low – only 1% of all returns are audited, according to 2009 IRS data. Yet some things on a tax return do increase your audit risk. Here are some red flags to watch out for:

-Home business that loses money year after year. The IRS may view this as a hobby, not a legitimate business.

-Home office deductions. If you claim a high percentage of your living space as a home office the IRS may be suspicious.

-A high level of itemized deductions. Claiming $40,000 in deductions on an income of $60,000 will probably draw IRS attention.

Casualty losses out of synch with income. You can’t claim a casualty loss that’s less than 10 percent of your adjusted gross income net any insurance payments received.

Need More Information?

Click on the "Get Started" button below, fill out our contact form and we will contact you within 48 hours.
Get Started