What Triggers You To Be Audited?
photo credit: joebeone
Many people doing their own taxes worry about being audited for making a mistake or claiming too much. I know i do every time i file them myself. Even small business owners often times file their own taxes through Turbo Tax online and worry if something will come back to haunt them. The IRS never furnishes as to why they are auditing your return, however there are some very clear signs that will basically tell you where you went wrong.
If your numbers are significantly different than the national averages, you may find your tax return up for scrutiny.
While your lifestyle is not said to be a factor, it most definitely is. If you are living in a $300,000 dollar home, paying payments on expeditions and BMW’s then obviously if you only claim a mere $40,000 annual income your almost guaranteed to be audited.
During January you receive all of your required documents showing how much you earned and what you paid out, the IRS receives this same information, so when you file they match them up to their records and if something is not right you are either put under audit or billed accordingly.
To continue reading audit factors and what to look for, go to Entrepreneur.com.
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