WSJ says the IRS is ramping up its audits this year, especially for high-earners. Here’s some ways to duck the ax.
• Don’t guess on the value on your non-cash contributions.
• Deducting big losses from what you say is a business but what the IRS says is a hobby.
• Make sure the income you’re reporting matches the amount on the income forms the IRS is getting independent of your return
Another red flag are deductions high above the national average. For someone earning $50-$100k, that’s $5812 in deductible taxes, $2703 in charitable gifts, and $8946 in interest. — BEN POPKEN