Enduring an IRS audit is stressful and time-consuming, even if the agency eventually decides against further action. While some audits are purely random, a few oversights and actions do catch the attention of the IRS.

According to Lance S. Cox Attorney at Law, an experienced Cincinnati tax attorney, you might be flagged for an audit if you:

• Fail to Report Income: The IRS receives a copy of each of your earning statements, including W-9s and 10-99 forms for independent contractors. If you misrepresent the amount on these forms or fail to disclose sources of income entirely, your returns may be flagged for further review.
• Being a High Earner: As a general rule, your chances of being audited are affected by your income level. While those who earn over $200,000 are audited just 4% of the time, taxpayers earning over $2 million have an audit rate of 21%.
• Take Large Business Deductions: U.S. tax law allows you to deduct business expenses, but attempting to take advantage of these rules will attract an auditor's attention. If you deduct a large percentage of your housing expenses as a home office, claim too many miles on your vehicle, and take significant deductions for travel and meals, you will need to have substantial documentation to defend these business expenditures in an audit.
• Taking Excessive Charitable Donation Deductions: Making charitable donations is a proven, lawful way to lower your tax liability, but high deductions will need to be documented. If you've lost your receipts, request copies from the organization to which you donated before filing your return.

The tax attorneys at Lance S. Cox Attorney at Law have decades of experience preparing returns and guiding their clients through the complex IRS audit process. With their expertise, you can avoid triggering an audit in the first place. If one does occur, they will represent your interests passionately. Visit the website to learn more about their wide range of services, or call (513) 528-6000 to schedule a consultation with a tax attorney.