Comments on: Ten Tips for Avoiding an Income Tax Audit

By: mascot

mascot — Tue, 15 Apr 2008 21:15:41 +0000

#9 makes no sense at all for any business that does a significant amount of sales. If you run a business that has sales of say $750,000 and make say $100,000 then your expenses are $650,000 which is clearly way above any 63% threshold. This ratio might make sense for some types of businesses but it clearly won’t fit any business with any significant amount of sales income.

By: emilyg

emilyg — Tue, 25 Mar 2008 21:23:31 +0000

Those are great tips — thanks so much for posting that. This is my first year out of college with a full-time job, so my first time with a real tax return. I never knew anything about auditing (besides the fact that I didn’t want it to happen), so I feel much better equipped next time around.

By: squawkfox

squawkfox — Mon, 24 Mar 2008 15:40:13 +0000

On #4: I love filing electronically. I get my refund sooner, I save moolah on stamps, and I save a trip to the post office. Clean, easy, no mess, no fuss. I do print all confirmation receipts and a copy of my return (just to be safe).

By: Kyle

Kyle — Mon, 24 Mar 2008 14:46:19 +0000

Regarding number 5, this is my first year owning part of an LLC and I did all the taxes. I think I would actually prefer to go through an audit than do a 1065 and all those K-1’s again. Ok, I may be exaggerating, but only slightly.