Comments on: 14 IRS Tax Audit Red Flags – Minimize Your Chances of Being Audited by the IRS

By: Jules in Calif

Jules in Calif — Wed, 11 Apr 2012 23:27:47 +0000

I got an audit letter for medical expenses in 2009, no big deal it was for an adjustment of $3,000 if I could not show proof, which I did. All I had to do was
1. Mail them the medical statements or reciepts showing I paid off my part.
2. Print out my insurance report for that year showint the total billed to them (this is to ensure you did not get re-imbursed).
3. Printed out my pharmacy report for co-pays on RX meds.
It took six months to clear but that was it.

By: kastnna

kastnna — Thu, 08 Mar 2012 01:43:19 +0000

Most CPAs and attorneys will tell you that #9 is the wrong thing to do. The additional statement can’t be interpreted by the IRS computer system and thus an individual agent HAS to look at your return. It often draws unnecessary attention to your return. And if an agent reviews your return, he looks at all of it, not just the comment you added.

Furthermore, adding an explanatory statement makes it look like you are covering something up. It’s similar to your kid coming into the room and immediately telling you all the good stuff that they did that day. It only takes a second for you to say “okay, what did you break”?

The rest is great advice.

By: Uncanny

Uncanny — Wed, 09 Feb 2011 21:14:40 +0000

I totally got audited for #12. I’d been making contributions for years and rolling them forward (my income was low as a student). Then I graduated, got a job, and claimed a bunch at once. Hello, letter from the CRA. It was fine because I had the documentation, but it was a stressful day digging it all out and sending off for verification.

By: ISN

ISN — Fri, 04 Feb 2011 04:18:36 +0000

The dreaded audit! Thanks for the great tips for avoiding red flags.

Donald Trump once remarked, “If you want to get rich, you need to lower your taxes to the legal minimum.”

The government gives so many tax deductions to home businesses, that it’s crazy not to leverage them to reduce your taxes and increase your income.

Tax trainer Sandy Botkin has some great courses on proper documentation, so that you’re audit proof.

By: David

David — Fri, 04 Feb 2011 04:12:11 +0000

“Render to Caesar the things that are Caesar’s, and to God the things that are God’s.”

Just be sure to properly document your legitimate tax deductions and you shouldn’t set off red flags.

By: David

David — Tue, 01 Feb 2011 17:32:32 +0000

I think that people have such a fear of being audited, that they don’t take advantage of all of the tax breaks, especially with home business tax deductions which can potentially save people thousands of dollars every year.

By: Kelli

Kelli — Sat, 29 Jan 2011 10:23:19 +0000

This year we did fertility treatments and have about 30K in medical expenses, we have documented all of them, however I am afraid this will trigger an audit. Has anyone claimed medical expenses before? Does this put us at higher risk for an audit? I would love to “attach a note” (#9) to explain. Can you do that with turbo tax?