Top 10 ways to avoid a tax audit

[SomeYoungGuy]

http://www.walletpop.com/blog/2010/01/28/top-10-ways-to-avoid-a-tax-audit/

Not an outstanding article, but decent reminders.

also,
http://www.irs.gov/taxtopics/tc303.html


"Worried about an IRS audit? Avoid what's called a red flag. That's something the IRS always looks for. For example, say you have some money left in your bank account after paying taxes. That's a red flag."
-- Jay Leno

 

[the1]

If you have a very active Schedule A and it's substantially different from previous years expect an audit. The IRS just loves receipts!

 

[dandxg]

From what I have seen and read using Turbo Tax vs. having a CPA or EA do you taxes increases your chance of audit. The IRS presumes a pro will do a better job so they are less likely to audit.

 

[TraderZones]

Quote from dandxg:

From what I have seen and read using Turbo Tax vs. having a CPA or EA do you taxes increases your chance of audit. The IRS presumes a pro will do a better job so they are less likely to audit.

Source?

 

[nutmeg]

Quote from TraderZones:

Source?

Imo, might be a sales pitch to sell TurboTax Audit Defense.

 

[dandxg]

Source? Years of reading about taxes and write offs in the US. Frankly I believe it came from a group promoting incorporation, but it's been several years. Additionally rulings against traders whom attempted to write off expenses claiming trader status. Believe don't believe I don't care I am not selling anything. I makes common sense to me.

Post Edit. Just after I posted I recall some of the info came from Sanford Botkin's book Lower Your Taxes. He advocated using TT and getting your CPA to sign off, good luck with that. I just use the same EA that I used when I was in outside sales.

 

[TraderTactics]

Good reminders, will take a note of it. Thanks for sharing.

 

[TraderZones]

Quote from dandxg:

Source? Years of reading about taxes and write offs in the US. Frankly I believe it came from a group promoting incorporation, but it's been several years. Additionally rulings against traders whom attempted to write off expenses claiming trader status. Believe don't believe I don't care I am not selling anything. I makes common sense to me.

Post Edit. Just after I posted I recall some of the info came from Sanford Botkin's book Lower Your Taxes. He advocated using TT and getting your CPA to sign off, good luck with that. I just use the same EA that I used when I was in outside sales.

thx. Just that there are a lot of opinions voiced here, and nice to know that you actually posted based on an informed opinion.