20 IRS Audit Red Flags
Resource: Joy Taylor, Kiplinger, July 2020 –
These red flags could increase your chances of drawing unwanted attention from the IRS:
- Failing to Report All Taxable Income
- Making a Lot of Money
- Taking Higher-than-Average Deductions or Credits
- Taking Large Charitable Deductions
- Running a Business
- Claiming Rental Losses
- Writing Off a Loss for a Hobby
- Deducting Business Meals, Travel and Entertainment
- Claiming 100% Business Use of a Vehicle
- Claiming the American Opportunity Tax Credit
- Incorrectly Reporting the Health Premium Tax Credit
- Taking an Early Payout from an IRA or 401(k) Account
- Taking an Alimony Deduction
- Failing to Report Gambling Winnings or Claiming Big Gambling Losses
- Operating a Marijuana Business
- Claiming Day-Trading Losses on Schedule C
- Engaging in Virtual Currency Transactions
- Engaging in Cash Transactions
- Failing to Report a Foreign Bank Account
- Claiming the Foreign Earned Income Exclusion
To view the full article by Joy Taylor please click here.