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What Are The Chances of being Audited?

Even though this is completely legal and you have a right to take advantage of the techniques here, some of my clients have been concerned that it will trigger "red flags" at the IRS office and they will be audited.

As we all know, an audit can be a real hassle.

These techniques will not set up any "red flags", or draw any attention to you. Millions of people are using these types of techniques every year on their tax return.

About 1.5% of all returns are audited. If you are earning $50,000 a year or more, the rate jumps to 8% - four times the average. However if you are earning less than $25,000, it drops to about 0.6%. So don't be paranoid. And even if you did get audited, you have nothing to hide. If you have done everything legally, don't worry. Stories of a cruel and ruthless IRS are blown way out of proportion.

If you presently own your own business in some other area of interest (i.e. computer store, craft making, etc.), you may already know some of the tax advantages when using your automobile for business. You can write-off any expense incurred for business use (gas, maintenance, insurance, etc.) and even write-off a portion of the depreciation over the year. This depreciation alone can add hundreds of dollars to your tax refund each year.

Lastly, remember tax laws change every year, so make sure you update yourself on any changes that may affect you before proceeding with any methods explained in this chapter.

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