IRS Audit “red flags”, Post #2

This is the second post discussing situations that increase your chances of incurring an audit from the Internal Revenue Service.

Certain expenses listed on your tax return are more likely to draw the attention of the Internal Revenue Service. 

Meals and entertainment expenses are often scrutinized by the IRS since they are commonly abused by certain taxpayers. 

Automobile and travel expenses also increase the chances that you will be audited by the Internal Revenue Service.

I strongly feel that you should deduct the above expenses; however, you need to ensure that the expenses are valid deductions and you need to keep the required documentation.

Internal Revenue Publication 463 is a good source of information regarding these expenses and can be retrieved at:

http://www.irs.gov/pub/irs-pdf/p463.pdf

Mike Sylvester, CPA/ABV