Tuesday, June 25, 2013

Taxes, Audits, & Cheats


We find it vital to keep an accurate of our income, contributions, and deductions.   In addition, we make sure we use a reputable accounting firm.  We found this helpful when we were audited by the IRS. 

About three years ago, we received a letter from Internal Revenue Service informing us we owed taxes. yikes...  After calling my husband, I called Mr. Frazier our accountant in Tennessee.  I was upset.   Mr. Frazier was calm.

Here is the bottom line. We did not owe any taxes. Why were we audited?  Was it a random inspection? Did something in our tax returns warrant a red flag? If individuals contribute 10% of their income to their churches are they audited more frequently? According to some financial analysts contributions can raise red flags in the IRS.
I wonder. 

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