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High-Risk Tax Audit Targets

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Worried about the possibility of a tax audit? The odds are low: during the past few years, less than two percent of all tax returns were audited by the Internal Revenue Service (IRS).

Your chances of being audited depend on:
• What type of income you report
• The amount of income you report
• The type of business you're in
• The tax deductions you report
• Your past history with the IRS

Your odds are higher if:
• Your income runs on cash transactions (such as restaurants, bars,
retail stores and so forth) where it would be easier to skim cash
undetected
• Your itemized deductions are high in proportion to your income
• You claim tax shelter investment losses
• You have been previously audited and found to be owing taxes

It's especially important to keep good records, such as:
• Detailed accounts of daily business cash transactions
• Receipts for charitable deductions and all itemized deductions
• Investment loss documentation

It's also a good idea to consult with a tax attorney now to learn what more you can do to protect yourself should you be audited in the future.

Please contact Canopy if you would like further information. The EAP is here to help.

Portland Metro Area: 503–639–3009 • Salem Area: 503–588–0777 • Toll Free: 1–800–433–2320