A while back, we discussed some IRS audit triggers called the IRS Dirty Dozen list. This is a collection of filing no-no’s to avoid when you, or a tax preparer, is filing your tax return. They say the two most serious IRS audit red flags are falsifying income and using fake forms. And the bottom line is that ignorance is no defense – whoever dreamed up the scheme, YOU are on the hook when the IRS discovers the problem.
Now, let’s look at some other IRS audit triggers on the list.
Fraudulent Charities
The biggest offender here are those charities whose names sound like ones that are legitimate – but aren’t. These fake charities actually pull a double scam – they steal your well-intentioned gifts, and keep them away from the actual legitimate charities. So, steer clear of IRS audit trouble by doing your homework. The internet can help; in fact, the IRS has a helpful list to identify the known offenders.
Inflating Your Refund
If a tax preparer “guarantees” you a bigger tax refund before he even takes a look at your records – beware. Also be wary if your guy bases his fees on the size of your tax refund. And if he asks you to sign a blank return before he gets started – walk away.
Frivolous Tax Arguments
Got a beef with the Federal government? Save it for your blog, and NOT your tax return. If you want tax audit trouble, use your tax return as a forum for protest to avoid tax responsibility. Trust us, the IRS has heard it all, and they aren’t amused. Check out this IRS rundown of frivolous tax arguments.
Improperly Padding Your Deductions
In the midst of a tax panic, Homer Simpson once declared that “Lisa is now a clergyman, Maggie is seven people and Bart was wounded in Vietnam.” Avoid IRS tax problems – don’t be like Homer! Also, check out these IRS FAQs on proper Earned Income Tax Credits and child tax credits.
IRS Audit? Contact IRS Away Today
We’ll say it again: if you commit tax fraud knowingly, or an unscrupulous tax preparer leads you astray, YOU are ultimately responsible. The time to address your IRS tax problems is NOW. But you don’t have to go it alone. The IRS Away team offers you the peace of mind knowing that your tax problems are being dealt with effectively and professionally. Contact tax attorney Joseph M. Arndt III at (803) 771-4037 for a free consultation.