| For most Americans, the mere suggestion | | | | of an IRS audit go up massively. The |
| of an IRS audit is enough to require the | | | | software will compare your deduction |
| changing of the pants. So, what percent | | | | with others in your income group and |
| chance do you have of an IRS audit? | | | | will find that it is rare that anyone in |
| Relax; the percentages of IRS picking | | | | that income range ever makes such |
| you for audit are very small if you have | | | | donations. A red flag will be assigned |
| filed your taxes honestly and properly. | | | | to your file and it is audit time. If |
| The IRS gets a couple hundred million | | | | you actually have $10,000 in charitable |
| tax returns filed every year. It does | | | | deductions, however, this should not |
| not have the necessary staff to audit | | | | stop you from claiming them. You need to |
| each and every tax return. In fact, the | | | | simply make sure that you have all the |
| IRS audits less than 2 percent of tax | | | | necessary documents to support your |
| filers. So theoretically, the | | | | claim of making a donation in that |
| possibility of you getting audited by | | | | amount. |
| the IRS is very low unless you attract | | | | More than employees, self-employed |
| their attention by committing a few | | | | people are targets of audits as they |
| mistakes. | | | | have the ability to convert personal |
| One area where you can hurt your | | | | expenses in to business ones and put it |
| possibility of an IRS audit is | | | | under itemized deductions. Your car |
| underreporting income. For zeroing in on | | | | mileage and expenses on meals and |
| possible undisclosed taxable income, the | | | | entertainment must have detailed |
| IRS has devised certain criteria. The | | | | information backup. The use of a car or |
| IRS has computer software that separates | | | | truck should have detailed logs and |
| the suspect filers from the clean ones. | | | | invoices of maintenance. Meals above $75 |
| It also filters out filers who have | | | | should have bills and for amounts below |
| claimed an excess of deductions, have | | | | that, a simple entry in the diary with |
| shown losses for successive years and | | | | details of date, place and name of |
| show expenses disproportionate to the | | | | restaurant and kind of entertainment |
| size of their business. | | | | they provide, person entertained and |
| If you earn $50,000 and show $10,000 as | | | | your relationship to them will suffice. |
| charitable deductions, your possibility | | | | |