Getting audited

Dan Pilla of taxhelponline.com, One of our greatest fears is filing a tax return that raises the audit red flag. Too often, this fear prevents people from claiming their legitimate tax deductions and this costs citizens billions of dollars each year in taxes they don’t owe. Some red flag deductions include mileage, business meals and entertainment, medical expenses, charitable contributions and the home office. But the IRS has a form you can use to audit-proof any deduction that might raise a red flat. It’s Form 8275, the Disclosure Statement. Here’s how it works. Form 2875 tells the IRS you have explanations for your deductions. Then, provide the explanations, and proof of your deductions, with Form 8275 when you file. This proves your deductions are legitimate and your return will not be assigned for a full scale audit. Even better, using Form 8275 to make disclosure to the IRS ensures that you wont be penalized if you do make a mistake. Form 8275 is not always easy to find, but it’s available on the IRS’s website.

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