9 Audit Red Flags That Will Get You Audited By The IRS

The Huntington Post has listed the following 9 red flags that will possibly cost you to go through an IRS audit:

-You are wealthy

-Low or no reported income

-Mismatching income

-Disproportionate charitable contributions

-Home office deduction

-Calling a hobby a business

-Holding foreign bank accounts

-Excessive business deductions

-Multiple deduction claims for children

Since every transaction has literally gone online, people could no long hide their incomes/expenses. Even if one is paying or receiving cash only, the other parties that are involved in the cash transactions will eventually deposit/withdraw the balance amount online. And sooner or later, the scheme will be traced back and people get caught.