or most Americans, the undisclosed taxable income, the
mere suggestion of an IRS IRS has devised certain criteria.
audit is enough to require The IRS has computer software
the changing of the pants. So, that separates the suspect filers
what percent chance do you have from the clean ones. It also
of an IRS audit? filters out filers who have
claimed an excess of deductions,
IRS Audits and the Percentages have shown losses for successive
years and show expenses
Relax; the percentages of IRS disproportionate to the size of
picking you for audit are very their business.
small if you have filed your
taxes honestly and properly. The If you earn $50,000 and show
IRS gets a couple hundred million $10,000 as charitable deductions,
tax returns filed every year. It your possibility of an IRS audit
does not have the necessary staff go up massively. The software
to audit each and every tax will compare your deduction with
return. In fact, the IRS audits others in your income group and
less than 2 percent of tax will find that it is rare that
filers. So theoretically, the anyone in that income range ever
possibility of you getting makes such donations. A red flag
audited by the IRS is very low will be assigned to your file and
unless you attract their it is audit time. If you actually
attention by committing a few have $10,000 in charitable
mistakes. deductions, however, this should
not stop you from claiming them.
One area where you can hurt your You need to simply make sure that
possibility of an IRS audit is you have all the necessary
underreporting income. For documents to support your claim
zeroing in on possible of making a donation in that
amount. and name of restaurant and kind
of entertainment they provide,
More than employees, person entertained and your
self-employed people are targets relationship to them will
of audits as they have the suffice.
ability to convert personal
expenses in to business ones and An IRS auditing is inescapable
put it under itemized deductions. when they are discrepancies or
Your car mileage and expenses on questionable activities on forms
meals and entertainment must have you file. Nevertheless, remember,
detailed information backup. The these items must be deemed odd by
use of a car or truck should have the computer sorting out filing
detailed logs and invoices of papers of every American. As a
maintenance. Meals above $75 result, the possibility of you
should have bills and for amounts being audited is very small.
below that, a simple entry in the
diary with details of date, place
About the Author:
Richard A. Chapo is with http://www.businesstaxrecovery.com - information on taxes.
Read more articles by:
Richard Chapo
Article Source: www.iSnare.com 
