Is it good that I show my 2019 taxable interest income higher than it actually is so that I do very well indeed in case of an IRS audit?
- Max HooplaLv 71 month agoFavorite Answer
You should file a return that is as accurate as you can make it. Only about 1% of tax returns are audited so if yours just passes the smell test you will be OK.
- curtisports2Lv 71 month ago
No, it's stupid. For two reasons.
1. You may pay more tax than you will actually owe.
2. You are making a false statement on an official document. You can be charged with fraud.
- StephenWeinsteinLv 71 month ago
No. If you show it higher than it actually is, you would do very bad in case of an IRS audit. To do well, you must show it exactly as it actually is.
- SumDudeLv 71 month ago
NO. The IRS wants the truth (and has the truth because payers of interest report the payments to the IRS).
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- ShayLv 71 month ago
MISTAKES is a great reason to BE AUDITED.
Reporting the WRONG taxable interest income is a MISTAKE.
ACCURATE returns will help you do "very well indeed" in case of an IRS audit.
ACCURATE returns also REDUCES the chances for an IRS audit.
- RichardLv 51 month ago
No it would be irrelevant.
- MichaelLv 71 month ago
No. It is good to report what it actually is.
- EvaLv 71 month ago
That would be foolish. It won't help you in the event of an audit. They're not going to overlook something just because you over-reported something else. A very small percentage of returns are actually audited.
- JudyLv 71 month ago
no, it's not smart at all. In an audit each item is looked at separately
- 1 month ago
Best way to do well in the event of an IRS audit is to have all your paperwork so that you can document everything they ask for. I keep my paperwork for 7 years.
Overstating your interest income would raise a red flag as the IRS computers cross check this with reporting from banks and brokerage houses using your social security number. You would not only be paying tax on income you did not receive but you would also increase the risk of an audit.