Be Prepared When Filing Your Taxes

Be Prepared When Filing Your Taxes

Here are twelve hot spots on your return that can raise the chances of scrutiny by the IRS.

  1. Making too much money- higher income filers = higher chance of an audit
  2. Failing to report all taxable income-IRS gets copies of all 1099s & W-2s
  3. Large charitable contributions-just be sure to keep all your documents
  4. Claiming home office deduction-use exclusively & regularly as your principal place of business.
  5. Claiming Rental Loss- Just keep a long of your hours because they agency will check.
  6. Deducting Business meals, travel, Entertainment- keep detailed records, IRS loves this one.
  7. Claiming 100% business use of a vehicle
  8. Large losses on Schedule C- hobby loss rule may apply
  9. Running a cash business- tempting target for IRS auditors
  10. Failing to report a foreign bank account can lead to penalties
  11. Engaging in currency transaction-If you are making large cash deposit be prepared for IRS scrutiny
  12. My favorite- Taking higher than average deductions- be sure have the proper documentation

There’s no reason to ever pay the IRS more tax than you actually owe. So just properly document all your items.

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