The Internal Revenue Service (IRS), everyone’s favorite government agency, isn’t as out-to-get-you as you might think. Most taxpayers have nothing to worry about (only around 1% of returns will be audited this year). Still, even the most prudent filers can find themselves on the IRS’ radar, and some people are at a much greater risk than others.
FYI, failure to file is a misdemeanor. Falsely filing, on the other hand, is a federal felony that can result in lengthy sentences and steep fines. See: Wesley Snipes’ Sentence A Big Win For Tax Officials
The following infographic explains how the IRS chooses who to audit, the chances of being audited, and some simple tips to keep yourself on the IRS’ good side. Happy tax filing season!
- TurboTax – Top Red Flags That Trigger an IRS Audit (turbotax.intuit.com)
- How to Avoid Tax Audit: Red Flags for Entrepreneurs (powerhomebiz.com)
- Tax tips: How to avoid an IRS audit (usatoday.com)