When having a home office was not as common as it is today, it was believed that it was a red flag for the IRS to conduct an audit. As having a home office became more common, this myth is no longer true. However, the IRS does not look the other way when it comes to deductions for having a home office. It has to make sense to them in their review. If they feel you have some how claimed deduction improperly you can rest assure they will look into it.
Some taxpayers think that by filing after the audit period they are in fact safe from being audited. It may seem to work out only because you started off with the odds against you being audited. Whether you file early or late will not absolutely prevent you from being audited. In fact, the IRS can place an audit three years after a tax return has been filed.
Another myth is that if you make under a certain amount you will not be audited. Levels of income bear no effect on an audit being issued. It simple comes down to randomly getting audited no matter how much you make or if the IRS believes you are evading taxes in any way, they will issue an audit.
Even if you have filed and received your tax return, you can still be audited by the IRS if they get a tax return from someone else who has named you and the information does not match your tax return. Let's not also forget that the IRS can audit a tax return up to three years after it is received.
Even though you have hired a tax professional does not mean you can not get audited. Even professionals will provide false deductions to gain your trust and get you a return. Many tax offices will assist and represent you should you be audited.
When you itemize your deductions you make the IRS look closer at your return to see if they can spot any missing information or errors.
If you file separate from your spouse it will neither decrease or increase your chances of being audited. Filing jointly or separately is just a preference and you should choose which way works best for you.
When having a home office was not as common as it is today, it was believed that it was a red flag for the IRS to conduct an audit. As having a home office became more common, this myth is no longer true. However, the IRS does not look the other way when it comes to deductions for having a home office. It has to make sense to them in their review. If they feel you have some how claimed deduction improperly you can rest assure they will look into it.
Some taxpayers think that by filing after the audit period they are in fact safe from being audited. It may seem to work out only because you started off with the odds against you being audited. Whether you file early or late will not absolutely prevent you from being audited. In fact, the IRS can place an audit three years after a tax return has been filed.
Another myth is that if you make under a certain amount you will not be audited. Levels of income bear no effect on an audit being issued. It simple comes down to randomly getting audited no matter how much you make or if the IRS believes you are evading taxes in any way, they will issue an audit.
Even if you have filed and received your tax return, you can still be audited by the IRS if they get a tax return from someone else who has named you and the information does not match your tax return. Let's not also forget that the IRS can audit a tax return up to three years after it is received.
Even though you have hired a tax professional does not mean you can not get audited. Even professionals will provide false deductions to gain your trust and get you a return. Many tax offices will assist and represent you should you be audited.
When you itemize your deductions you make the IRS look closer at your return to see if they can spot any missing information or errors.
If you file separate from your spouse it will neither decrease or increase your chances of being audited. Filing jointly or separately is just a preference and you should choose which way works best for you.
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