Audit RED FLAGS: 12 Ways to Prevent Uncle Sam From Showing Up at Your Door

Photo by Rawpixel from Envato Elements

4. Avoid claiming way too many deductions

Deductions are great, and they can help our finances enormously, but when you’re claiming way too many, Uncle Sam has his eyes on you. Yes, it’s your right to claim deductions, but only if you are entitled.

And if you’re wondering how the taxman knows when you’re claiming way too many deductions or not, note that he selects a number of tax returns for audit, and the selection is actually based on how different those returns are from the statistical norms.

RELATED: 11 Lesser-Known Tax Deductions You Shouldn’t Miss This Year

If you’re not entitled to claim a certain deduction, don’t do it unless you really like Uncle Sam’s smile.

PREV1 ... 4 5 6 ... 13NEXT

Leave a Comment

Your email address will not be published. Required fields are marked *

related posts
from our network