Wednesday, February 17, 2010
CNN Money, Tax Audits: Uncle Sam Wants You!:
Worried about a tax audit? Maybe you should be. More Americans than ever may be subject to unwanted attention from the IRS this season as the government pumps billions of dollars into tax collection.
More than 1.4 million Americans were audited last year, the most in a decade. Even more audits are expected as the Obama administration plans to spend $8.2 billion in tax enforcement initiatives in 2011, a nearly 10% increase over last year.
Being meticulous with your tax return may seem obvious, but many people aren't careful enough. And with the IRS seeking to collect every penny it can this year, you could end up paying for even the smallest mistakes.
While the IRS doesn't reveal its secret formula for flagging returns, here are some tips to avoid popping up on the auditor's radar.