Gearing Up to File Your Taxes? Beware These Potential Audit Triggers
With the tax-filing deadline set for July 15, now's when Americans who have ignored their taxes thus far should really get moving. But at a time when so many people are experiencing their share of financial stress, the last thing you need is an IRS audit on your hands. As such, it pays to avoid these red flags that could subject your return to further scrutiny.
The tax forms you receive summarizing your various types of income aren't just sent out for your benefit; the IRS receives a copy of each one as well. That means you must report all of your income, including the $72 in savings account interest you earned or the $800 you received from a client in exchange for some freelance work you did last year.
If the income you report on your tax return doesn't match what the IRS has on file, you can pretty much bet on hearing from the agency after the fact, so don't take that chance. Instead, comb through all of your tax documents and make sure you're reporting every dollar you took in during 2019.
Source Fool.com
