top of page
Search
  • Writer's pictureKathryn Bruns, CPA

What's your tax audit risk ?

According to a certain professional tax news publisher, the risk of an individual tax audit is 1 out of 170. Despite these relatively low odds of audit, one must still be careful not to elevate your odds. Here are the "red flags":


-disproportionately large deductions compared to income

-alimony issues in conjunction with the tax reform

-large charitable donation deductions

-small business meals, entertainment, and travel deductions

-small business deductions for use of personal vehicle

-virtual currency

-S-corporation losses in excess of stock basis

-losses for activities that look like hobbies


Ensure your CPA knows the art of mitigating the risk (I do!)


Don't wave the red flag !!


45 views2 comments

2 Comments


Kathryn Bruns, CPA
Kathryn Bruns, CPA
Aug 22, 2019

Hi Richard,

I think we talked about you getting your pension to withhold NC tax so you don't end up with the tax due. If you have not done that for 2019, you'll owe again and have similar penalty. Please call me to discuss what we can do at this point. Thanks !

Like

Unknown member
Aug 22, 2019

Good to hear from you. Should I file estimated returns? Got a message from DOR a few Months ago. Had to pay $35 or $40 int and penalty. No problem with me. I had been thinking of calling you anyway.

Like
bottom of page