| Each year, there are about 1.5% of the American tax | | | | those that work in a cash business like waiter, flea |
| payers that will experience an income tax audit. The | | | | markets, or an online merchant where a receipt is not |
| exact returns that are chosen are by a computer | | | | always produced for each monetary transaction, this |
| analysis of which ones are the most likely to have | | | | area is where the highest non-reported income is |
| committed fraud by pre-determined tell tale signs. To | | | | found. The IRS already knows this and will be looking. |
| avoid this from occurring to you, there are certain | | | | If you report a larger than normal amount that was |
| things you should avoid. The lower your income is, the | | | | given to charitable organizations that does not fit the |
| lower your chances for an audit. This is true unless | | | | average for your income is a big red flag. If you have |
| your income is dramatically decreased in the span of | | | | had a tax delinquency in the past, you are already |
| one year. This is one of the biggest key indicators that | | | | close to being on the list. Make one calculational error |
| set off the computer logarithm. Many of them can | | | | and you will be audited. The last is nothing you can do |
| easily be explained with the loss of a job or other | | | | to avoid an income tax audit. It is if someone turns you |
| income. | | | | in for tax fraud. |
| Another type of warning factor is if your deductions | | | | Of course, the above is not legal or accounting advice |
| are larger than what the IRS has preset as the | | | | -- it is for informational purposes only. Before making |
| correct level. Make sure you have records or do not | | | | any decisions regarding legal or tax matters, it is vital |
| deduct them. A loss from a tax shelter is a dead | | | | that you consult a licensed professional lawyer or tax |
| giveaway. The IRS looks at these very close. For | | | | accountant. |