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Beware, the IRS is looking for these red flags this tax season [MarketWatch]

ALPHABET INC CL C (GOOG)  More Company Research Source: MarketWatch
US:NASDAQ Investor Relations: abc.xyz/investor
PDF Beware, the IRS is looking for these red flags this tax season Filing taxes can be complicated, but a simple mistake or a slight exaggeration could warrant an audit from the Internal Revenue Service. Here’s how someone is chosen for an audit: An IRS software program may randomly select the taxpayer and compare the return to other similar returns to detect any anomalies, or the taxpayer in question may be linked to a family member or business partner who is being audited . Also see: The tipping point: When to use tax software instead of seeing a professional The IRS can audit returns up to three years old. Inaccuracies could lead to penalty charges: 20% of the disallowed amount for filing an “erroneous claim for a refund or credit,” the IRS stated, or $5,000 if the tax return was deemed “frivolous,” where there isn’t enough information to assess correct or incorrect information. In more serious cases, taxpayers could also be brought to trial and face criminal charges of tax evasion [Read more]

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