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  • 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 !!

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