Tax season is in full swing and the filing deadline is just around the corner. Investors are often concerned about the potential for an IRS audit. While there is no way to guarantee an investor won’t
get audited, Matthew Frankel wrote an article for Motley Fool
listing three mistakes that could trigger an audit.
Frankel’s first mistake to avoid – failing to report IRA/401(k) distributions as taxable income. All distributions are reported to the IRS by your financial institution on form 1099-R, and if the numbers don’t match up to the individual return, it could raise a red flag.
Want to know the other two tax mistakes to avoid? Read here
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