How To Get Audited By The IRS

Hello Everyone!
Here are some good tips I read in an article from the USAA.com advice section.
"Here are eight potential red flags that could trigger the scrutiny of the IRS — and tips to help you survive an audit.

1. High incomes. Your chance of being audited substantially increases once your income crosses $200,000, according to a recent IRS report on its enforcement activity.

2. Large itemized deductions. Deduct every penny you're entitled to — but realize that if your itemized tax deductions are bigger than the IRS' target range for people at your income level, your return may get a second look.

3. Home offices. You can only take a home office deduction if you meet all of the qualifications, including regularly and exclusively using part of your home as your principal place of business. For example, if your office doubles as the kids' playroom, you're generally unable to deduct it. For details, see IRS Publication 587.

4. Missing investment income. You know the IRS Form 1099 that financial services companies send you that summarizes your interest and dividends for the year? The IRS also gets that information. Make sure your return properly includes this information.

Extra Help Online
To help you cut the risk of an audit, use a tax preparation service, such as TurboTax®, which offers USAA members discounts and:

• Calculates your taxes by doing the math for you.
• Double-checks your tax return for accuracy and fixes errors or omissions.
• Features an Audit Risk Meter™ to show your chances of getting audited.

5. Incomplete returns. If your return is missing a few pieces, the IRS may wonder what else you forgot. A tax-preparation service that calculates figures you enter, such as TurboTax®, may help you avoid certain clerical errors that raise auditors' eyebrows. Still, you are responsible for providing the correct information.

6. Business losses. In a tough economy, business losses are more common — but that doesn't mean the IRS won't double-check them. Make sure your expenses are legitimate and eligible to be deducted and that your business isn't just a thinly disguised hobby.

7. Charitable deductions. You'll need a canceled check or dated receipt for any cash contributions, and contributions of $250 or more require written acknowledgement from the charity. If you made a noncash contribution valued at more than $5,000, you'll need an expert appraisal to back up your claim.

8. Medical expenses. If you're 64 or younger, you can deduct these costs only to the extent they're greater than 10% of your adjusted gross income. It's important to keep detailed records. Remember, you can't deduct the cost of over-the-counter medicine, health club dues or most cosmetic surgeries.

If you're doubtful about the decisions you're making when completing and filing your tax return, consider hiring a professional. Spending money for expert guidance today could help you avoid paying increased taxes and penalties tomorrow."

Happy Tax Season,