With the tax deadline bearing down on us, I thought I’d touch base today, to give you some thoughts on what could get you into hot water THIS tax season.

And, well, really any tax season.

Now … sometimes, Columbia clients come to us from other Columbia professionals because they have gotten themselves into hot water with the IRS, and they’re facing the withering gaze of the auditors.

Hopefully, you haven’t experienced that.

And let’s not let that happen in the future. Here’s how.

Six Common Ways Columbia Taxpayers Receive IRS Audits

We don’t want you to face the pressure of being audited. Nobody enjoys it, so we’ve put together a list of our “big six” ways that most Columbia people end up getting audited. Simply avoiding these isn’t a 100 percent foolproof plan — but it certainly helps.

Here are the biggies we watch out for when preparing and submitting tax returns…

1. Indefensible claims
There are so many old wives’ tales saying that certain items trigger an IRS audit: home office deductions, passive losses, schedule C (sole proprietorship) activities, etc. But you really can’t predict the trigger — and you can drive yourself crazy trying. However, you *can* adopt the “be reasonable” mantra about every item on your return, including these. So if you don’t have a decent claim for a home office, don’t claim it. If your money-losing sole proprietorship is really more of a fun hobby, treat it as such.

Look–don’t be scared to take deductions and losses to which you’re entitled, but don’t take tax positions you aren’t comfortable defending. If you take reasonable tax positions, you likely won’t end up needing to defend them. And if you do face an IRS audit, it will likely be far easier.

2. It doesn’t all add up

3. Lost 1099


4. Suspicious OVER-reporting


5. Fighting unnecessary fights

Frankly, it’s simply a matter of practicality (and wisdom), rather than principle. It just doesn’t pay to fight with the IRS on small matters. So don’t get into the bureaucratic system and risk bigger problems for a few dollars. Just pay it, and move on.

6. Ticky-Tack Prior Year Amending




Deltrease Hart-Anderson
(803) 739-9449

D Hart Accounting Practitioner, LLC