Monday, October 28, 2013

Top Ten IRS Red Flags

The overall IRS audit rate is around 1% for individuals. The following 10 items can kick up that percentage and bring you some IRS attention:

1. Reporting income over $200,000.
2. A schedule C with a net loss.
3. Office in the home deduction with business percentage over 20%
4. Claiming 100% business use of a car.
5. Rental real estate loss
6. Large fluctuation of income from prior year
7. Foreign bank account
8. Income on return doesn't match 1099
9. Meals and entertainment deductions
10. Larger itemized deductions than average for your income level

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