Many Americans have an abiding fear of being audited by the Internal Revenue Service. Although it is true that there has been an increase in audits over the past few years, most of these have been conducted on high-income taxpayers, self-employed individuals who file a Schedule C, partnerships, corporations and S corporations.
What are the Most Common Red Flags?
According to J.K. Lasser’s Your Income Tax 2010, published by John Wiley & Sons, Inc., the following circumstances will increase the likelihood of an audit:
