Is it the meal expenses or the auto expenses…. or is it that trip to Bali that you took with your family that you wrote off as a travel expense?!
All jokes aside, how does the IRS decide who to audit? 🤔
In the days of "big data," the IRS uses an algorithm to measure all kinds of data on your tax return, and compare it to others'. The IRS knows your field, and they know what a "normal" range of expenses is on any given category on your tax return. So, when your numbers pop out of that normal range, your tax return gets a flag.
It's all automated.
In this week's podcast episode, I'm talking about the fascinating way that the IRS identifies taxpayers for audit. And how you can see what they're seeing, and keep yourself protected.
I'm also teaching you which category on your deductions is actually beneficial to you and which categories you should not treat as a "dumping ground".
It is a little tax-nerdy, but very interesting, and will keep you protected.
Newsletter Sign up: https://www.desitaxservice.com/email-sign-up
Instagram: instagram.com/desitaxservices
Is it the meal expenses or the auto expenses…. or is it that trip to Bali that you took with your family that you wrote off as a travel expense?!
All jokes aside, how does the IRS decide who to audit? 🤔
In the days of "big data," the IRS uses an algorithm to measure all kinds of data on your tax return, and compare it to others'. The IRS knows your field, and they know what a "normal" range of expenses is on any given category on your tax return. So, when your numbers pop out of that normal range, your tax return gets a flag.
It's all automated.
In this week's podcast episode, I'm talking about the fascinating way that the IRS identifies taxpayers for audit. And how you can see what they're seeing, and keep yourself protected.
I'm also teaching you which category on your deductions is actually beneficial to you and which categories you should not treat as a "dumping ground".
It is a little tax-nerdy, but very interesting, and will keep you protected.
Newsletter Sign up: https://www.desitaxservice.com/email-sign-up
Instagram: instagram.com/desitaxservices