7 Red Flags That Could Trigger An IRS Audit Of Your Taxes

“For individuals, it usually comes down to being too overly aggressive with tax deductions or benefits that could invite the IRS in,” says Logan Allec, a certified public accountant and owner of the personal finance site Money Done Right.

By Janna Herron, USA Today

In most cases, you’ll receive a request for more information if your return falls under review. In tax year 2017, seven in 10 of the agency’s return examinations were conducted by correspondence rather than in person.

Still, if you receive a notice from the IRS, take it seriously. Respond quickly with the documentation that the agency requests, such as letters from charities or bank statements.

“If you’re not responding or not giving what the IRS feels is adequate documentation, then it could become a full-fledged audit,” Allec says.

Here’s what could trigger an audit or review.

Too-high deductions

Certain deductions you take can’t be fudged without raising some eyebrows at the IRS. For instance, the IRS receives information on the mortgage interest you paid, so you can’t inflate that figure. Others – such as charitable contributions – are easier to overstate, since the IRS doesn’t get documentation from charities on your donations.

Missing income

If you’re tempted to “forget” to include income from a side gig or contract work, don’t. The IRS receives copies of your W-2 and 1099…

Read on…you’ll find the entire article HERE on USA Today’s website

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