•Unreported income -- This is a no-brainer. If you file a return but fail to report income received, you're heading for trouble. All of your interest, dividends, and miscellaneous income must be reported. Remember: everyone who sends you a 1099 is also sending one to the IRS.
•Round numbers -- It's unlikely that your investment returns were exactly $500, or that your mortgage interest deduction was $10,000. Too many round numbers on a return are a symptom that something fishy may be going on.
The best way to avoid an audit is to be honest and organized!.—MEGHANN MARCO
Common Red-Flags That Lead to IRS Audits [Get Rich Slowly]
(Photo:doviende)
Rounding off numbers = auditing? That's completely BS. I've been rounding up my .87 and .26, etc etc etc to the nearest or lowest dollar and I've never been auditing in the 10 years I've been playing taxes since I was 16.
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Besides, most of the time, they're cute.
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