Top 10 ways to avoid a tax audit

Discussion in 'Taxes and Accounting' started by SomeYoungGuy, Feb 2, 2010.

  1. the1

    the1

    If you have a very active Schedule A and it's substantially different from previous years expect an audit. The IRS just loves receipts!
     
  2. From what I have seen and read using Turbo Tax vs. having a CPA or EA do you taxes increases your chance of audit. The IRS presumes a pro will do a better job so they are less likely to audit.
     
  3. Source?
     
  4. Imo, might be a sales pitch to sell TurboTax Audit Defense.
     
  5. Source? Years of reading about taxes and write offs in the US. Frankly I believe it came from a group promoting incorporation, but it's been several years. Additionally rulings against traders whom attempted to write off expenses claiming trader status. Believe don't believe I don't care I am not selling anything. I makes common sense to me.

    Post Edit. Just after I posted I recall some of the info came from Sanford Botkin's book Lower Your Taxes. He advocated using TT and getting your CPA to sign off, good luck with that. I just use the same EA that I used when I was in outside sales.
     
  6. Good reminders, will take a note of it. Thanks for sharing.
     
  7. thx. Just that there are a lot of opinions voiced here, and nice to know that you actually posted based on an informed opinion.