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Tax Audit Red Flags: 11 Things That May Get the IRS to Pick You

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Audit
Cassandra Hubbart, DailyFinance
By Blake Ellis, @CNNMoney

Worried about a tax audit? You don't have to be.

Audits are avoidable, and it's not just about following the rules. From outlandish charitable giving to working in your own home office, you could be singled out if you hit a nerve with the Internal Revenue Service. Here's what the IRS looks for and tips to help you avoid getting chosen.




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TurboTax Articles

Are You Exempt From Health Care Coverage?

The Affordable Care Act, or Obamacare, is an individual mandate that requires all eligible Americans to have some form of basic health coverage by 2014. Those without insurance will receive a penalty when they file their tax returns ? that is, unless they have an exemption. TurboTax's Exemption Check can help you find out whether or not you qualify for an exemption.

Essential Tax Forms for the Affordable Care Act

The Affordable Care Act (ACA), also referred to as Obamacare, affects how millions of Americans will prepare their taxes in the new year. The law now includes penalties for all who haven?t obtained health insurance -- and those penalties are expected to be paid at tax time. The ACA also provides tax credits to help people pay for insurance, and you can claim those credits when you file your taxes. The Internal Revenue Service (IRS) has introduced a number of tax forms to accommodate the ACA.

Mortgage Refinance Tax Deductions

When refinancing a mortgage to get a lower interest rate or obtain more favorable loan terms, you're really just taking out a new loan and using the money to pay off your existing home loan. In general, the same tax deductions are available when you're refinancing a mortgage as when you're taking out a mortgage to buy a home.

How to Determine if You Have Minimum Essential Coverage (MEC)

The Affordable Care Act, also known as Obamacare, requires most Americans to have health insurance that meets a government standard known as "minimum essential coverage," or MEC. Whether your insurance qualifies as MEC depends not on the plan itself, but on how you obtained your coverage.

Rental Property Deductions You Can Take at Tax Time

Rental property often offers larger deductions and tax benefits than most investments. Many of these are overlooked by landlords at tax time. This can make a difference in making a profit or losing money on your real estate venture. If you own a rental property, the IRS allows you to deduct expenses you pay for the upkeep and maintenance of the property, conserving and managing the property, and other expenses deemed necessary and associated with property rental.

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kayo1025

Extremely charitable is a mistake?

April 15 2012 at 8:02 PM Report abuse rate up rate down Reply
rudniski136

We got audited because we rolled over some money and the company we rolled the money to didn't report the rollover to the IRS. I almost had a heart attack when I received the IRS letter. At least the agents were pleasant to deal with.

April 15 2012 at 10:02 AM Report abuse rate up rate down Reply
Hoosierladyus48

Why is it if you owe the IRS, they penalize you and charge you interest? My b/f is getting a refund back, but the IRS has been sitting on his check for over 2 months now. There has to be someone out there who can go up against them.

April 15 2012 at 6:39 AM Report abuse +1 rate up rate down Reply
1 reply to Hoosierladyus48's comment
papadon.don

LADY... B/f simply paid the crooks too much withholding over the year... very costly. If he adjusts w/h, he'll have more spendable $$$.... the IRS preys on ignorance.

April 15 2012 at 8:39 AM Report abuse rate up rate down Reply
dterraman

thousands of well armed government employees are all too willing to help releive you of your property

April 14 2012 at 12:17 PM Report abuse +1 rate up rate down Reply
Carol & Jay

They got me bent over the barrel again this year...

April 14 2012 at 11:32 AM Report abuse +2 rate up rate down Reply
sexyspeedcat1

crap im screwed

April 12 2012 at 6:30 PM Report abuse +1 rate up rate down Reply
tonynaps

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April 12 2012 at 5:51 PM Report abuse rate up rate down Reply
njcorrections05

Don't pay someone to settle a tax debt, a secret those other guys don't want you to know, here's the only forms you need to settle an its tax debt, don't buy into pennies on the dollar, those groups are being looked at by the IRS.

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DOnt worry you have time,

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April 12 2012 at 4:45 PM Report abuse -1 rate up rate down Reply
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April 12 2012 at 4:42 PM Report abuse -2 rate up rate down Reply
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April 12 2012 at 4:42 PM Report abuse -2 rate up rate down Reply