Including flow through entities such as partnerships

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including "flow-through entities" such as partnerships and Subchapter-S corporations, as do self-employed individuals who file Schedule C. In fact, Schedule-C filers earning between $100,000 and $200,000 face especially high odds, with 4.3% of these returns audited. Researcher CCH cites several types of deduction attempts that raise red flags for a good reason: They aren't allowed. These include a loss on your home, excessive moving expenses and medical deductions for unneeded cosmetic surgery. Nobody draws scrutiny like parents adopting a child. A staggering 69% of returns claiming the adoption credit were audited last year, noted Nina Olson, the National Taxpayer Advocate. Safeguard your identity . Although most people fear audits, being victimized by tax fraud could be the bigger risk. The IRS said it prevented fraudulent refund payments last year on about 3 million returns, or three times the number it audited. Taxpayer ID thefts mainly involve fraudulent requests for refunds using another person's Social Security number.. Crooks typically file early, before the actual taxpayer, and have the refund check diverted to them. When a crook gets there first, that can delay a refund to the real taxpayer for six months or more while the IRS investigates. Such thefts also cost the federal government, because a refund eventually will be paid to the rightful taxpayer even after payment of a fraudulent refund.
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All this should serve as a reminder to safeguard personal information.. One thing that many people probably don't secure as they should is a smartphone. Adam Levin, chairman of Credit.com, discourages people from
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