Schedule C Filers 3 times likely to be audited by the IRS
Are you a small business owner filing Schedule C on your individual income tax return and with an annual income over $100k? if yes, you are at a higher risk of being audited by the IRS. Here are key audit triggers for Schedule C filers:
- Large deductions that significantly offset income
- Repeated hobby loss write-offs
- Claiming 100% business use of a vehicle
- High deductions for meals, travel, and entertainment
- Home office deductions
- Rental losses
- Claiming the Research and Development Credit
- Receiving significant cash income (Form 8300 for amounts over $10,000)
Interested to get more information on how to be tax compliance and IRS audit ready? Contact us today!
