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Question: In turbo tax it says i have a medium-high audit risk…just how “high” is a high risk?

It’s because my personal business took a loss on my schedule C and I have three kids (EIC’s). Anyone know what “high” risk in Turbo Tax means?

Answer: It means that the IRS may contact you to fax them copies of your business income and expenses to prove you actually had a business.

Your business loss lowers your income. People tend to run business to make money, not lose it.

You are getting EIC. The amount of money you get from EIC depends on your total income picture. If the business loss caused you to qualify for *more* EIC, they may question you to see if you properly claimed the right deductions. (Alternately, if you collect EIC and you have a gain that causes you to get more EIC, the IRS wants proof that you actually had the income and that you took all of your expenses.)

Leawood audit results to be announced

Findings are to be disclosed tonight in a state audit of Leawood finances that was sought after the discovery of “significant discrepancies” in some village records.

TURBO TAX RAP

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