A plain vanilla return is usually safer than one that stands out. But if you have deductions that are above average, it's OK to take them.
There's no guaranteed way to avoid an audit of your tax return, but there are steps you can take to reduce the risk.
The IRS has increased the rate of audits, and nearly 30% of the very rich got their returns examined in 2011. That compares with 1% of taxpayers overall.
There's no surefire way to avoid the nightmare millions of taxpayers fear: an IRS audit. But there are a lot of ways to reduce the risk.
Businesses small enough that their income is reported on owners' returns account for the greatest amount of underpaid taxes. Only 1% of those are audited.
12% of taxpayers making $1 million or more were audited last year, up from 6% in 2009. Among those making less than $200,000, the audit rate stayed near 1%.
Never ignore a letter from the IRS. Sometimes you can solve the problem by sending more information, and sometimes you need a professional.
No one wants to be audited, but following some simple guidelines can make the process less painful -- and maybe less expensive.
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