If you are currently living and working in the United States, one thing you should know is how to avoid tax audit red flags. You know that you must pay them every year. The government must take a portion of everyone’s income in order to have money to run its many programs. The Internal Revenue Service, or IRS, is the agency in charge of collecting from people and monitoring who has and has not paid them. If you want to avoid getting special attention from the IRS, here are a few actions, or “red flags,” you should avoid.
When doing taxes, be aware that certain activities can trigger an audit. While you may not be evading, you should avoid not make your it look like you may be.