What Might Trigger a Tax Audit?
For taxpayers, an audit notice is perhaps the scariest part of the entire tax-filing process. Even more than having to write a large check at filing time, the thought of being audited is for many people worse. You may be almost entirely sure you’ve done nothing wrong, but still… that notice in the mail.
This is why it’s good to know what might trigger a tax audit ahead of time. The odds of an audit are very low, when given the entirety of the American taxpaying public, but if you know what they may be looking for, and what actions may color your return a deeper shade of red, you may be able to avoid those triggers.
Find out from “Professor” Rick Plum, CFP®, what the IRS is often looking for when searching for a tax return to audit on this week’s edition of Lucia Capital Group Weekly!
The information provided should not be considered specific tax, legal, or investment advice and is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal. This material was gathered from sources believed to be reliable, however, its accuracy cannot be guaranteed.
No client or prospective client should assume that the presentation (or any component thereof) serves as the receipt of, or a substitute for, personalized advice from Lucia Capital Group or from any other investment professional.
Rick Plum is a registered representative with, and securities and advisory services offered through LPL Financial, a registered investment advisor and member FINRA/SIPC. The investment professionals are affiliated with LPL Financial and are conducting business using the name Lucia Capital Group, a separate entity from LPL Financial.