The 5 Most Common IRS Audit Triggers on Maui

April 13, 2018

Do you know which are the most common IRS audit triggers on Maui?

It’s a well known fact the government agency will not think twice before calling you in for an audit. And the feeling that comes with finding that notice in your mailbox is not something businesses owners or individuals are ever looking forward to.

Tax payers everywhere should always aim to file their return correctly and on time. Failing to comply with the laws and regulations will definitely count as a red flag! And when tax season is right around the corner, you’ll definitely want to avoid all IRS audit triggers on Maui!

If you’re wondering which are the top few IRS audit triggers on Maui, take a look at the list below. Find out what are the mistakes you need to avoid at all costs.

Maui IRS Audit

1. Claiming too many deductions is one of the most obvious IRS audit triggers on Maui

Maximizing your business deductions is always a good idea! But if you insist on deducting too many expenses all of a sudden, you might offer the government agency the perfect reason to investigate your case.

Business tax deductions that seem unreasonable are definitely a red flag for the IRS.

2. Reporting too little income will definitely make the IRS suspicious

A big change in your amount of income could make the IRS act suspicious.

The government agency clearly knows how much income you’ve made the year before, so starting to report a much lower number this tax season is another common IRS audit trigger on Maui.

Aiming to pay less in taxes by deducting your expenses is expected. But insisting on wiping out most of your income this way will definitely make the government curious about your situation.

3. Inaccurate information or forgetting to file a form altogether are definitely big IRS audit triggers on Maui

Any anomaly that may occur when it comes to your tax forms will determine the IRS to raise an eyebrow right away!

The smallest mistake on your tax return can be easily tracked down by a software. With technology today constantly evolving, so does the IRS’ methods of detecting tax errors.

The Internal Revenue Service uses a system that can detect the smallest anomalies on your return. So make sure you file your records correctly and consult with your CPA to make sure everything’s in order.

4. Deducting too many meals and expensive entertainment

Nobody says you can’t work while having a meal with a client. But deduct too many expensive entertainment claims, and you risk being called in for an audit sooner than you think.

5. Being too generous is another common IRS audit trigger on Maui

Being generous and giving money to the needy is a very noble gesture. But business owners who suddenly, act particularly charitable this year, will definitely raise a red flag with the IRS.

To avoid one of the most common IRS audit triggers on Maui, make sure to keep accurate track of all your donation records. If it helps, hire a bookkeeper to make sure your files are kept safe and are always in order.