Do you live in Newport Beach, California, or College Park, Georgia? Do you own a construction or real estate rental firm? If so, you’re more likely than the average entrepreneur to get audited by the IRS this year, the RT network reports.
Although it only audits 1 percent of tax returns each year, the Internal Revenue Service has found out it’s more likely to get results by targeting wealthy entrepreneurs in those cities and industries. New Carrollton, Md., and Beverly Hills, Calif., are also on the taxman’s list of targets. A study by the National Taxpayer Advocate found these regions are the most likely to be home to tax cheats.
Even if you don’t live in the areas above, you could get hit with an audit: The IRS has been targeting small businesses with increasing frequency in recent years. If the worst happens to you, take a deep breath, then check out the Washington Post’s list of tips to help you be better prepared for an IRS audit.
Did you rush to complete your taxes this year–or are you in such a frenzy that you had to get an extension? Being frazzled might put you at risk for falling prey to tax scammers. Small Business Trends reports that the IRS has identified 12 “Dirty Dozen” tax scams that are most likely to hit small businesses. Phishing and fraudulent preparers are among the hottest rip-offs this tax season.
Read more at Small Business Trends.