Will Your Tax Return Draw the IRS’s Attention?

Businessman,Holding,Magnifying,Glass,And,Tablet

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.

Posted in
Rikin Gandhi

Transforming Ag Extensions in India: A Moment with Rikin Gandhi of Digital Green

Rikin Gandhi is chief executive officer of Digital Green. Rikin’s interests include sustainable agriculture and technology for socioeconomic development. He co-founded Digital Green as a research project in Microsoft Research India’s Technology for Emerging Markets team and now leads the spin-off of Digital Green that works to amplify the effectiveness of agricultural development globally. Rikin is a licensed private pilot and received patents for linguistic search algorithms that he helped

Robin Li; Venture capital

Why Venture Capital is Exciting and Rewarding | Robin Li

Robin Li is a VP at the GGV Capital Silicon Valley office. She focuses on investments in ecommerce and consumer internet. She is a member of the board of directors for Lively and is actively involved with Boxed, Bustle, Function of Beauty, musical.ly, Ibotta, OfferUp, Poshmark, Xiaohongshu, Yamibuy, and more.Prior to joining GGV, Robin worked at Flextronics’ Venture Arm covering hardware and technology investments and at Qiming’s Beijing office. Before venture capital, she spent three years at

Gaining the Trust and Confidence of those Around You

Gaining the Trust and Confidence of those Around You

Gaining the Trust and Confidence of those Around You Whether it be in business or everyday life trust and confidence are key ways of how we interact with others.  Building trust with your boss could land you that next promotion or show people that you are someone they can count on or could open doors…

Use These Helpful Tips Now to Make Next Year’s Taxes Easier

Use These Helpful Tips Now to Make Next Year’s Taxes Easier

Use These Helpful Tips Now to Make Next Year’s Taxes Easier The 2018 Tax season has come and gone. By now you’ve probably already forgotten about them. However, if you want to get ahead on next year’s taxes, now is the perfect time to start. The more prepared you are, the easier tax filing will…