Years ago, my mother did our income tax return once. I’m in sales as you all know. When she filed my return, she entered my income as “Cost of Goods Sold, instead of “Commission Income”. That triggered an audit. Over the years we have been audited several times. Needless to say, I never asked her to do my income taxes again. LOL.
Another time over 20 years ago now John and I were flagged again for an audit. Our accountant was dealing with the government auditors at his home office. He left his wife upstairs to entertain the auditors while he went downstairs to get whatever document the auditors were looking for. (He did not want us present for this audit) At one point during the day, one of the auditors tried to follow our accountant down stairs to his office,His wife jumped up to stop him, tripped and fell breaking her arm. When we found out, we were not happy at all.
All in all we have been audited about 4 times. This can be a very stressful time and at all costs, try to do things to avoid being audited.
Read below for tips on avoiding being audited.