The Truth About Tax Audits

S. Kay Bell

“Income tax has made more liars out of the American people than golf.”

—Will Rogers, humorist

Minimizing Audit Risks

Statistically, your risk of being audited is small. In 2007, for example, 1.4 million returns got a closer look from the IRS. But more than 140 million returns were filed that year.

The raw numbers don’t matter, though, if your return ended up in that one percent.

So that you don’t have to spend time, and money, in connection with an audit, here are some ways to minimize IRS interest in your return.

Know audit triggers—It’s no secret that certain tax moves get more attention from the IRS than others. These include excessive itemized deductions or claiming one of the popular business-related ...