10-18-2006, 09:38 AM
Remember three things when dealing with the IRS (my father has his IRS Agent card):
1. Deduct ANYTHING you want on your taxes. They can only deny the deduction and make you pay the taxes if you get audited. Hiding income is what gets you sent to jail...ask Al Capone.
2. Do your homework on deductions. Based on your income level, there are standard acceptable ranges of deductions for things like Charitable Contributions. If your deduction amount falls within acceptable ranges, you are less likely to get audited.
3. Once you get audited, you are very likely to get audited again in following years, even if your returns go back to "looking normal". Once the IRS system has you tagged as a tax cheater, they latch on for a long ride.
And don't forget, the IRS is the Government, and they are going to have more resources to nail you than you have to defend yourself. Be careful, and don't say I didn't warn ya.
1. Deduct ANYTHING you want on your taxes. They can only deny the deduction and make you pay the taxes if you get audited. Hiding income is what gets you sent to jail...ask Al Capone.
2. Do your homework on deductions. Based on your income level, there are standard acceptable ranges of deductions for things like Charitable Contributions. If your deduction amount falls within acceptable ranges, you are less likely to get audited.
3. Once you get audited, you are very likely to get audited again in following years, even if your returns go back to "looking normal". Once the IRS system has you tagged as a tax cheater, they latch on for a long ride.
And don't forget, the IRS is the Government, and they are going to have more resources to nail you than you have to defend yourself. Be careful, and don't say I didn't warn ya.