Have you ever listed your occupation as “retired,” yet you have a W-2, and your tax return includes an Office in Home schedule or Employee Business Expenses?

If so, Equifax Personal Finance Blog expert Eva Rosenberg, aka the Internet's TaxMama, warns that you might be waving a red flag at the Internal Revenue Service that screams, "audit me!"

Here are some other questions Ms. Rosenberg suggests we ask ourselves in order to avoid facing the IRS music:

  1. Is your tax return overrun with errors and inconsistencies?

  2. Is your occupation missing or inconsistent (see above)?

  3. Is your taxable income zero or less than zero (when you subtract your itemized or standard deductions from your adjusted gross income)?

  4. Are you taking disproportionate deductions for meals, entertainment, or travel?

After years of staring at tax returns, IRS agents know what to look for, and these are a few of the most common tripwires that could have you digging out receipts and other documentation.

Have you ever been audited? What did you learn from the experience?

To learn more, read the full post.

 

 

Ilyce R. Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com and The Equifax Personal Finance Blog, and is Chief Content Strategist at RealtyJoin.com, a community for real estate investors.

 
Posted by Ilyce Glink on 05/04/2011 12:09 PM   Comments (4)   Taxes in the ActiveRain Channel   irs rules, mortgage audits, tax advice  
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4 Comments on How to Ensure You Get Audited

MAY
04
2011
137,253 Points

Never been audited. I have used the most conservative CPA I could find to prepare all tax forms. I would rather pay a little more than get cranky for being accused of cheating. It would be even worse now since Tim the Tax Cheat is head of the IRS.
12:38pm • #1
MAY
06
2011
2 Featured Posts Called Shot Master

Thanks for the scare - luckily I got out of the tax business a few years ago and hired a good CPA - and now just have to focus on minding my business! :) I agree with John about Mr Tim heading the IRS seems a bit funny to me that if you are in a high place you somehow get overlooked.
8:53am • #2
MAY
13
2011
339,332 Points 5 Featured Posts

John- Good logic; makes sense to pay a little more and save yourself the headache.
1:56pm • #3
339,332 Points 5 Featured Posts

Gary- A good CPA will make a world of difference.
1:57pm • #4


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Ilyce Glink

Chicago, IL

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Think Glink Publishing

Office Phone: (847) 242-0550

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