The Tax Lady Roni Deutch and her law firm Roni Lynn Deutch, A Professional Tax Corporation have been helping taxpayers across the nation find IRS tax relief for over seventeen years. The firm has experienced IRS tax attorney who will fight the IRS on your behalf.
Having a home office is an audit red flag.
This myth was more popular when fewer people had home offices, but is definitely not true these days. Home offices are quite common today, and it alone will no longer flag you for an audit. However, that does not mean the IRS turns a blind eye to home office deductions. They will review it to make sure that it makes sense. If there is any reason for the IRS to believe that you are improperly claiming the home office deduction, then look out.
You can avoid being audited by filing late, after "audit season".
You would be surprised by how many people swear this works for them every time. Sure it works, but only because you start off with the odds against you being audited. Filing late or early will not help or prevent you from being audited. The IRS can audit you three years after the tax return in question is received.
If you make under a certain amount then you cannot be audited.
Income levels also have no affect on your audit probability. The IRS not only sends random audits to all income levels, but they take the time to look at each and every return. No matter what you make, if they believe that you are evading taxes in any way, they will audit you.
You cannot be audited once you have received your refund.
Receiving your refund just means the IRS has reviewed your tax return and agreed with your calculations. However, if they receive a return from a separate party who names you and that information does not match your return, then you can still be audited. And remember, the IRS can audit a return up to 3 years after it is received.
I cannot get audited if I hire a tax professional.
Some tax professionals are not always as "professional" as you would think. There have been multiple cases of tax preparers listing untrue deductions to assure you a return and your trust in them. However, many tax preparation offices provide you with audit assistance meaning that they will represent you against the IRS if you ever are audited.
Itemizing deductions will lower my risk of being audited.
While itemizing does not necessarily increase your risk for an audit, it does force the IRS to take and even closer look at your tax return. This also means they are more likely to spot any errors or missing information and call you out on it.
Filing business losses will not increase my audit chances.
Similarly to itemizing deductions, filing business losses will result in more paperwork, and thus a more scrupulous IRS. This does not mean, however, that you will get audited if you file losses. It simply means you need to check, and double check your numbers before sending your return in so that it is 100% accurate.
Filing separately than my spouse decreases our chances for audit.
Filing separately from your spouse neither increases or decreases your chance for audit. It is nothing more than a preference, and depends on what is best for you.
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