What two words cause the most panic to Americans? There are probably a hundred funny responses running through your mind right now, but we were thinking of a less humorous response: "IRS audit."
Your odds of avoiding an audit are usually pretty good. The IRS reviewed 771,095 in fiscal year (FY) 2019, resulting in a low audit rate of 0.4%. Raising red flags in your return are likely to increase your odds of being audited. Some of these cannot be avoided, but others are essentially errors in judgment.
The Tax Cuts and Jobs Act brought about many changes. If you're uncertain as to how your tax return is affected, it's far better to consult a qualified tax professional than make a mistake that may invite an audit. Advises Bronnenkant, "I would only suggest that people prepare their taxes honestly and truthfully, and also be able to support what they put on their return in the event they get audited."
To any IRS agents who may be reading this article, we actually appreciate your service…and we were just kidding about the Willie Sutton remarks. Please don't audit us.
The IRS and Treasury Department have extended the 2021 tax filing deadline from April 15 to May 17, due to the COVID-19 pandemic. In the interest of safety and to curb the spread of the coronavirus, all Taxpayer Assistance Centers (TAC) and face-to-face IRS services operate by appointment only. Taxpayers can call 844-545-5640 to schedule an appointment or find your local IRS TAC here. See the IRS Coronavirus Tax Relief page for the latest updates.
Don't give identity thieves the chance to file a fraudulent tax return in your name. Let MoneyTips protect your credit and your identity with a Premium membership.
Originally Posted at: https://www.moneytips.com/audit-red-flags
Information contained on this page is provided by an independent third-party content provider. Frankly and this Site make no warranties or representations in connection therewith. If you are affiliated with this page and would like it removed please contact email@example.com