Tax season is stressful enough without the thought of being audited by the IRS. The IRS audits about 1% of all tax returns because of lack of staff and resources, so the odds are in your favor. However, there are some things that could cause the IRS to take notice of your tax return.
These are things the IRS looks for:
- Make too much money – The odds of the IRS taking notice increases by almost 3% for people making more than $200,000.
- Didn’t report all taxable income – The IRS has copies of all of your W2s and 1099s so make sure and claim all of your taxable income.
- Charity donations – Claiming you donate more than what you make can raise a flag. The IRS can calculate how much you can donate based on how much you make.
- Deducting business expenses – If you are self-employed, claiming excessive deductions for travel, meals and entertainment can raise a flag.
These are just a few items on your tax return that can cause the IRS to take notice.
For more information on filing your taxes, contact the Weslaco accountants of Gonzalez & Arrambide, Inc. at 956-447-9009.