The IRS can spot deductions on a tax return that seem to be disproportionately large in comparison with the income
Phoenix, AZ (PRWEB) March 23, 2016
National Debt Relief recently shared in an article published February 26, 2016 some IRS red flags to help consumers avoid an audit. The article titled “ 7 Red Flags That Could Get You An IRS Audit” looks into some consumer behaviour that oftentimes prompt the IRS to conduct an audit which is quite a stressful event on any consumer’s life.
The article starts off by explaining that it would be impossible to find a person who is looking forward to an IRS audit every year. It is believed that it is one of the worst feelings in the world for people that is why almost everyone tries to do their taxes correctly. This is the reason why it is crucial for consumers to identify what can cause a red flag in their accounts.
The article shares that one of the surest ways for consumers to get that ominous letter from the IRS notifying them that their taxes are being audited is to take in higher deduction that their declared income. The IRS can spot deductions on a tax return that seem to be disproportionately large in comparison with the income. The agency can them pull that tax return for a thorough review.
Big charitable deductions is just more than corporate social responsibility because companies and individuals can write the amount off from their returns. But people need to understand that this can raise a red flag when the amount being contributed is not in proportion to their income amount that they filed. This is because the IRS pegs charitable contributions according to income level.
The article also shares that there are people who declare gambling losses but does not declare their winnings. This can draw the attention of the IRS – especially in the event that the casino or other venue reported the winnings on their W-2G forms. The agency can match that with what consumers are declaring and trigger an audit.
To read the full article, click https://www.nationaldebtrelief.com/7-red-flags-that-could-get-you-an-irs-audit/