IRS Audits Rose 21% in 2005
The IRS reported, in their 2005 IRS Data Book, that the number of audits last year increased by 21% to 1.2 million returns, which followed an increase of 19% from 2004 to 2005.
CNNMoney did a piece on the five audit red flags and they were:
- Overkill on charitable contributions - especially non-cash contributions, make sure you have documentation/receipts.
- Too many deductions for the self-employed - That big vehicle deduction didn’t make the IRS happy…
- Above-average deductions - The IRS has data on how much each income’s average deduction should be and if you’re out of line, they’ll be curious. Honestly though, if you’re taking deductions correctly, there’s nothing you can do about this one.
- Making six figures - Thanks for the tip but what are you supposed to do, make less?
- Careless omissions - Do it electronically and it’s less likely to have spelling mistakes or something like that.
via the IRS newsroom & CNNMoney.
Print Article
Email Article
Stumble It!
Bookmark
reddit.com
Tags:
Related Posts
- Did Your 401K Balance Increase 50%?
- MBA Salaries & Bonuses Increase
- M&S Carpet Carpet Purchase and Install Review
- Beware of Audit Attack Dog
- New I-Bond Rates - 1.0% Fixed, 2.85% Inflation
Did you like this article? If so, you can get all the latest articles delivered to your email inbox for free each morning by entering your email address in the box below. Your email will only be used to deliver this once-daily subscription and you can unsubscribe at any time.
There are 1 comments, add your thoughts now!
I really, really hope they factor in the whole Katrina thing when deciding how much charitable giving is “normal” in 2005.
Previous Article: « 6 of 10 “Hottest” Cars are Toyota’s
Next Article: Tax Relief 101: Real Estate Deductions »