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Tax audit facts and myths

Do you know what might make Uncle Sam take a closer look at your return? If you answer most of these eight questions correctly, then this tax-filing season should be worry free. But miss more than a couple, and you better dig out those receipts and get ready to spend some quality time with an Internal Revenue Service auditor.

  1. I don't make a lot of money, so the IRS isn't going to be looking at my return closely.

    True.
    False.
  2. I use a tax professional, so my return is safe.

    True
    False
  3. I never file for an extension because the IRS thinks I'm using the extra time to concoct tax-saving deductions.

    True
    False
  4. I got a refund so that means my return is clear.

    True
    False
  5. Itemizing deductions instead of taking the standard one will get me audited.

    True
    False
  6. If I declare a business loss it increases my odds of being audited.

    True
    False
  7. If I file an amended return to get a refund or more money back, chances of audit go up.

    True
    False
  8. I never use the pre-printed label because some are randomly coded to mark the return for audit.

    True
    False

-- Updated: March 21, 2003

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