Another item that increases you chances of IRS audit is a return that shows far more expenses than income. This shows that you spent more than you made and often makes the IRS wonder where that money came from. If your itemized deductions (Mortgage interest, charitable contributions, medical expenses, and the like) far exceed your reported income your chances of IRS audit have increased.
If you have correctly reported your income and if your deductions are legitimate and documented then you should certainly take them; however, be aware your chances of IRS scrutiny have increased.
Mike Sylvester, CPA/ABV
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