Generally speaking, the following are some of the circumstances that can trigger an IRS audit for individual taxpayer's in 2010 as follows;
- The Taxpayer has large amounts of itemized deductions on his or her tax return that exceed IRS targets.
- The Taxpayer is a shareholder or partner in an audited partnership or a S Corporation.
- The Taxpayer claims tax shelter investment losses on his or her tax return.
- The Taxpayer's business expenses are substantial in relation to income reported on his or her tax return.
- The Taxpayer's have claimed substantial rental expenses on your tax return. Sometimes Taxpayers claim substantial repair expenses that are actually improvements that should really be capitalized and depreciated over the applicable period.
- The Taxpayer is a shareholder or partner in an audited partnership or a S Corporation.
- The Taxpayer has complex investment's or business expenses on his or her tax return.
Please also click on the following link to review tips to avoid an IRS Audit.
Tips to avoid an IRS audit for 1040 form filer
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