17 Reasons the IRS Will Audit Your Tax Return » Mortgage Masters Group

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During your. IRS calls grantor trusts, which allows them to use the Social Security number for the creator or "grantor" of the trust. Any income or deductions that are attributable to the trust.

Your return could also be selected for a tax audit. If the auditor that initially reviews your return thinks it is necessary to conduct a more thorough examination, it will be forwarded to an examining group and reviewed by a manager to determine if it is best to move forward with a full-fledged audit or accept the return as is.

If you receive a document showing income, including an IRS Form 1099-MISC for independent contractor income, you must include that income in your tax return. Not reporting income is one of the best ways to get audited, and penalized. Turn your 1099-MISC form over to your tax preparer so it gets recorded along with any other business income.

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17 Reasons the IRS Will Audit Your tax return. math errors may draw IRS inquiry, but they’ll rarely lead to a full-blown exam. Although there’s no sure way to avoid an IRS audit, these 17 red flags could increase your chances of unwanted attention from the IRS.

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