The Internal Revenue Service (IRS) has a new list of audit targets. Are you on their radar?

The IRS is focusing on high-income taxpayers, particularly those with income from flow-through entities (i.e., S-corporations, partnerships and trusts), income in excess of $250,000, and receipts of $1 million or more. Your audit risk will also rise if you haven’t filed a return in the past or if you have unreported financial accounts overseas.

The IRS will continue to select audits from traditional targets as well. Some traditional targets include:

• Small business owners
• Taxpayers claiming deductions for a “business” auto or a home office
• Taxpayers who claim itemized deductions in excess of the national average

Unless you have substantial income or fall within one of the specific or traditional targets, the likelihood of an IRS audit is low. If you are selected for an audit, make sure you are represented by a CPA or tax attorney. Flexible Accounting Services of the Triangle can assist you in documenting your income and deductions, and represent you before the IRS.