Avoid An IRS Audit

These are several line items on your 1040 that can trigger an IRS Audit.  Don't think the IRS just conducts audits on big fish.  Although the IRS doesn't say how they determine who will be audited, stats show that if you earned less than $200K your chance of an IRS Audit is 1%.  However, the more you make the greater the odds are you can be picked for an IRS Audit.  If you earned more than $200K your chance of an audit increases to 3% and if you earned over $1 million your chance of an audit is 5%.

Triggers For An IRS Audit:

• Higher reported income increases your chance of an IRS Audit

• Self-Employment increases your chance of an IRS Audit

• Deductions that are higher than the national average - with respects to your reported income will increase your chance of an IRS Audit

• Some jobs can increase your chances of an IRS Audit like -- waitress, hairstyles (jobs where tips are given)

• A big trigger for an IRS Audit is an error on your 1040