4 Red Flags For Tax Auditors

Tax collectors and tax accountants are dropping by about 4 percent, with annual salaries of about $50,000. Sorry, Uncle Sam.

The Internal Revenue Service (IRS) will cut down on tax collection this year because of cuts to their own budget. But these red flags may still get you audited post-Tax Day.

Tax Day is never fun, especially for Libertarians. But for a lot of people it’s a relief, because, well, the worst is over. That is, of course, unless you’re into fraud or just sloppy with your own bookkeeping. If you’re sweating over potential tax audits, at least know what you’re up against. The following are more likely than anything to raise an auditor’s antennae:

1. Really big charitable donations. Donating more than $250 to any one organization will probably require a receipt.

2. Home office deductions. Chances are your home office isn’t 1,200 square feet. Don’t try it.

3. You claimed the Earned Income Tax Credit. There are plenty of people who claim this legitimately and have nothing to worry about. If you’re lying, though, brace yourself.

4. You’re rich. Mo’ money, mo’ problems … especially if that money is paid to you under the table.

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