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20 IRS Audit Red Flags

July 07, 2020
Tags: audit, irs, tax

Resource: Joy Taylor, Kiplinger, July 2020 - 

These red flags could increase your chances of drawing unwanted attention from the IRS:

  1. Failing to Report All Taxable Income
  2. Making a Lot of Money
  3. Taking Higher-than-Average Deductions or Credits
  4. Taking Large Charitable Deductions
  5. Running a Business
  6. Claiming Rental Losses
  7. Writing Off a Loss for a Hobby
  8. Deducting Business Meals, Travel and Entertainment
  9. Claiming 100% Business Use of a Vehicle
  10. Claiming the American Opportunity Tax Credit
  11. Incorrectly Reporting the Health Premium Tax Credit
  12. Taking an Early Payout from an IRA or 401(k) Account
  13. Taking an Alimony Deduction
  14. Failing to Report Gambling Winnings or Claiming Big Gambling Losses
  15. Operating a Marijuana Business
  16. Claiming Day-Trading Losses on Schedule C
  17. Engaging in Virtual Currency Transactions
  18. Engaging in Cash Transactions
  19. Failing to Report a Foreign Bank Account
  20. Claiming the Foreign Earned Income Exclusion

To view the full article by Joy Taylor please click here.