Income Tax Audit - Avoid the Common Red Flag Items

To help avoid an income tax audit, there are certainMost every American makes donations to the needy
things you must make sure you do not do.and poor. Many take a tax deduction for what they
One way to automatically get the attention of thecontributed in the name of charity. If this is your case,
official looking at your return is if you forget to signbe honest with the actual worth of the items given.
your return. If this is forgotten, then an official will beThe general rule here is that a donated item is worth
wondering what else you forget and probably take aat least 1% of its original value when it was purchased
very close look at your entire return. This sounds soand never more than 30%. There are not enough
basic but it is true. It happens so often the IRS evenexceptions to this to list any. This includes a pair of
placed the signing of your return on the checklist ofdesigner pants that were worn only once. You might
things to do before sealing the envelope.have just paid $50 for them, but do not claim more
Calculational errors are a very easy mistake tothan $15 on your tax return. To the IRS, they are just a
correct. When you are finished, recalculate everypair of pants.
equation until you conclude with matching numbers forThese are three very common triggers that could
each line. If you are dyslexic, have another member ofcause an income tax audit. By avoiding these
your household check the math. The error is perceivedmistakes, you could save yourself a lot of misery.
as a person not paying attention to details or notOf course, the above is not legal or accounting advice
caring enough. This is why the IRS official will get so-- it is for informational purposes only. Before making
annoyed with this type of error. If it is too obvious, anany decisions regarding legal or tax matters, it is vital
audit can be triggered just because you annoyed anthat you consult a licensed professional lawyer or tax
official.accountant.