How to Ensure You Get Audited
Sign up for our FREE Monthly Email Newsletter
In addition to keeping in the financial know, you may be interested in checking your credit score and report.
¹The credit scores provided under the offers described here use the Equifax Credit Score, which is a proprietary credit model developed by Equifax. The Equifax Credit Score and 3-Bureau scores are each based on the Equifax Credit Score model, but calculated using the information in your Equifax, Experian and TransUnion credit files. The Equifax Credit Score is intended for your own educational use. It is also commercially available to third parties along with numerous other credit scores and models in the marketplace. Please keep in mind third parties are likely to use a different score when evaluating your creditworthiness. Also, third parties will take into consideration items other than your credit score or information found in your credit file, such as your income.
²The Automatic Fraud Alert feature is made available to consumers by Equifax Information Services LLC and fulfilled on its behalf by Equifax Consumer Services LLC.
³Equifax Credit Report Control™ is only available while you have a current subscription to Equifax Complete Premier. Locking your credit file with Equifax Credit Report Control will prevent access to your Equifax credit file by certain third parties, such as credit grantors or other companies and agencies. Credit Report Control will not prevent access to your credit file at any other credit reporting agency, and will not prevent access to your Equifax credit file by companies like Equifax Personal Solutions which provide you with access to your credit report or credit score or monitor your credit file; Federal, state and local government agencies; companies reviewing your application for employment; companies that have a current account or relationship with you, and collection agencies acting on behalf of those whom you owe; for fraud detection and prevention purposes; and companies that wish to make pre-approved offers of credit or insurance to you. To opt out of such pre-approved offers, visit www.optoutprescreen.com/.
4We will require you to provide your payment information when you sign up and we will immediately charge your card $4.95. After that, we will charge the card $19.95 for each month you continue your subscription. You may cancel at any time; however, we do not provide partial month refunds.
Equifax® is a registered trademark and Equifax Complete™ Premier is a trademark of Equifax, Inc. © 2014, Equifax Inc., Atlanta, Georgia. All rights reserved.
Years ago, I was helping a banker with his tax return, and he complained that his bank was having problems with borrowers who submitted phony tax returns. I told him that if he wanted to assemble his staff for one hour, I could show them exactly how to identify a made-up return and find the lies.
I even bet him that I could tell him more about the borrowers, their lives, and their finances than he and his staff could learn from the application. We performed a blind test, where they removed all identifying information about the client—and I won.
If I can do that, so can the IRS!
People come to TaxMama all the time to ask me to help them or their clients during IRS audits. Invariably, when I look at the tax return that was selected for audit, it’s obvious to me that it was just begging to be audited.
Look at your own tax return for these obvious signs:
Do you have errors and inconsistencies all over your tax return?
Is your taxable income zero or less than zero (when you subtract your itemized or standard deductions from your adjusted gross income)?
Do you have very high itemized deductions—and very low taxable income, or none?
Do you have several Schedule Cs (Profit or Loss from Business) in your tax returns, with losses or very little profit?
Are you taking disproportionate deductions for meals, entertainment, or travel?
Is your business showing a substantial loss, with modest income and no advertising expense?
These are some of the obvious, commonsense things that come to mind. Though after you’ve been looking at tax returns for twenty or thirty years, some things just stand out as being obvious—without your being able to define why up front. Fortunately for you, many of the longer-term employees at the IRS are retiring. The new ones don’t have this level of insight—yet.
Medical Tax Deductions Are Worth More Than You Think
5 Tax Lessons Learned from Filing Your 2010 Tax Return
Last-Minute Tax-Filing Tips: 6 Mistakes Every Tax Filer Should Avoid
Strategies to Ensure You Get Credit for Your Charitable Deductions
Do I Get a Deduction for My Gifts? Or Do I Get Punished for Being Generous?
Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.