High Risk Tax Audit Targets

Gary S. Wolfe Esq.
February 27, 2009 — 1,760 views  
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IRS tax audits may be random or may be triggered by the information you declare on your tax returns.

Your chances of being audited depend on: (1) What type of income you report. (2) The amount of income your report. (3) The type of business you're in. (4) The tax deductions you report. (5) Your past history with the IRS.

Chances of being audited by the IRS are greater under the following circumstances:

1) You have large amounts of itemized deductions on your tax return that exceed IRS targets.

2) You claim tax shelter investment losses on your tax return.

3) You have complex investment or business expenses on your tax return.

4) You own or work in a business which receives cash and/or tips in the ordinary course of business.

5) Your business expenses are large in relation to your income on your tax return.

6) You have rental expenses on your tax return.

7) A prior IRS audit resulted in a tax deficiency.

8) You have complex tax transactions without explanations on your tax return.

9) You are a shareholder or partner in an audited partnership or corporation.

10) You claim large cash contributions to charities in relation to your income on your tax return.

11) An informant has given information to the IRS re: unreported income.

About the Author

Gary Wolfe is an international tax attorney specializing in asset protection, IRS tax audits, and international litigation. Please see http://gswlaw.com for more information.

Gary S. Wolfe Esq.