Will Your Tax Return Draw the IRS’s Attention?
No one wants to experience a tax audit. The good news is that most people never will have to go through that experience. The IRS simply doesn’t have the time and resources to audit every tax return. In fact, the IRS only audits about 1 percent of all returns. That means most people don’t have to worry about being audited. However, if you want to be extra careful and decrease your odds off being chosen even more, there are some tips to keep in mind when you file your tax return.
There are some red flags that could increase your chances of catching the IRS’s all-searching eye. Here are a few of them:
- You make a lot of money
- Your deductions are higher than normal
- Your charitable deductions are high
- You don’t report all taxable income
- You own or run a small business
- You claim the alimony deduction
- You claim a loss for a hobby
- You claim rental loss
- You deduct a lot of business expenses: travel, entertainment and meals
- You don’t report a foreign business account
- You cash out some of your 401k or IRA early
- You claim large gambling losses or don’t report big winnings
These are some of the most common ways to get the IRS’s attention, but if you avoid these kinds of things you might reduce your chance of an audit.
However, there is no full-proof way to avoid an audit, but keep this in mind: as long as you are being honest on your taxes you don’t have anything to worry about. Even if you are selected for an audit you will come out unscathed if you have nothing to hide. Another thing that can help is to contact a professional tax preparer to do your taxes for you. This will decrease errors and your chances of being selected for an audit. Contact GROCO if you need help with your taxes. Call 1-877-CPA-2006, or click here.
Nuraxi Holdings: Pioneering the Future of Health and Longevity with Sparrow Rogers, Serial Entrepreneur
Introducing Nuraxi Holdings Nuraxi Holdings, a trailblazing venture operating in stealth mode, is at the forefront of unraveling the enigma of longevity. Our journey takes us through the intricate landscape of biomedical research, advanced AI models, and an unprecedented dataset that disrupts the norm. With an unwavering commitment, we strive to decode the mysteries of…
Unlocking Value: When ROI Transcends Monetary Gains with Mary D’Souza – Chief Investment Officer at Misha Investments
Introduction In this interview, Alan Olsen, CPA, MBA discusses with Mary D’Souza unlocking value: when ROI transcends monetary gains. Mary is the Chief Investment Officer (CIO) at Misha Investments. Transcript: Alan Olsen Hi, this is Alan Olsen and welcome to American Dreams. My guest today is Mary D’Souza. Mary, welcome to the show. Mary…
Rescuing Lives: Battling Sex Trafficking and Empowering Communities with Daphna Ziman – Founder of Children Uniting Nations
Introduction In this interview, Alan Olsen will discuss with Daphna Ziman about rescuing lives: battling sex trafficking and empowering communities. Daphna is the founder of Children Uniting Nations. Transcript: Alan Olsen Hi, this is Alan Olsen and welcome to American Dreams. My guest today is Daphna Ziman. Daphna welcome to today’s show. Daphna Ziman Oh,…
Why Good Companies Face Preventable Lawsuits
Introduction In this interview, Alan Olsen, CPA, MBA discusses with Alex Gertsburg why good companies can face preventable lawsuits. Alex is the Managing Partner of Gertsburg Licata. Transcript: Alan Olsen Welcome to Alan Olsen’s American Dreams Show. My guest today is Alex Gertsburg, Alex, welcome to today’s show. Alex Gertsburg Thanks, Alan. Really, really great…