The Dirty Dozen, 12 Things That Will Get You Audited By The IRS.
Most people think the IRS is like big brother and watches everything that comes in their way. Truth is only about 1% actually get audited. That doesn’t mean you should go crazy and write off everything, but if you are filling out a schedule C, there are things the government looks for that they consider a red flag. These twelve things will get you audited fast. It’s best to avoid being audited because if they catch you at something, there may be some hefty penalties.
1. Making too much money
2. Failing to report all taxable income
3. Taking large charitable deductions
4. Claiming the home office deduction
5. Claiming rental losses
6. Deducting business meals, travel and entertainment
7. Claiming 100% business use of a vehicle
8. Writing off a loss for a hobby activity
9. Running a cash business
10. Failing to report a foreign bank account
11. Engaging in currency transactions
12. Taking higher-than-average deductions