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Old 02-13-2009, 05:10 PM
moneysense moneysense is offline
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Default Things that can cause an IRS audit.

Mathematical mistakes can lead to an audit but not usually a full audit. Mistakes in addition and subtraction need to be double checked for before sending in your tax return.

If a lot of your income is in cash, this puts you at risk for an audit. Plus people who are self-employed, or a small business owner are both watched by the IRS. The reason being is that the IRS is trying to find out where the $345B worth of uncollected taxes are.

People shouldnt brag about what do because the IRS offers a reward of fifteen to thirty percent of taxes collected to people who turn the braggarts into the IRS.

The IRS uses the "DIF SCORE" program to compare your deductions with those from people of in the same tax bracket.

Be sure your tax preparer is an honest one. Those that promise you a "refund" may be using inflated deductions, etc that can send up a red flag to the IRS.
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