Who’s most likely to get audited by the IRS this year? According to Debra Estrem, Managing Director of the scarily-named Tax Controversy Group at Deloitte Tax LLP, the service is going to be focusing more on the wealthiest taxpayers, but is also going to be focusing on people with unusually large deductions and business losses.
As Ben Steverman wrote for Bloomberg, Estrem sees the IRS including in its list of targets taxpayers with:
–large charitable contributions
–large mortgage interest deductions
–large losses from self-employment ventures
Look at this as the IRS trying to focus its limited resources on Going Where The Money Is. None of this means you cannot have significant mortgage interest deductions, or give a lot to charity, or lose money in a venture that you reasonably believe will eventually become profitable.
But as always–document, document, document.