What are the top tax return audit flags for the self-employed?
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Tax Professional Answers
Patrick O'Hara , EA
Your chances of getting audited depend alot on your business form and the type of business you operate. For instance, a Schedule C sole proprietorship is more lkely to get audited than a partnership or corporation return.
Some of the hotbutton areas for self-employed schedule C filers include:
•Home Office Space Deductions
•Meals, Travel, Entertainment
•Writing Off a Vehicle
•Consecutive Years of Income Loss (hobby business)
•Hiring Family
•Disproportionate Income To Lifestyle
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585 weeks ago
Some of the hotbutton areas for self-employed schedule C filers include:
•Home Office Space Deductions
•Meals, Travel, Entertainment
•Writing Off a Vehicle
•Consecutive Years of Income Loss (hobby business)
•Hiring Family
•Disproportionate Income To Lifestyle