After a long night of drinking with clients, a business owner got thrown in jail for getting tangled up in a bar fight.
He subsequently attempted to deduct all the drink and dinner expenses from the night -- along with the bail he paid to get out of jail and the cab fare to get back to work the next day.
He was ultimately able to deduct the meal and drink expenses -- and even the taxi fare, because they were work-related. But the more than $10,000 in bail money was a no-go, said Dominique Molina, president of the American Institute of Certified Tax Coaches.
To avoid catching the attention of the IRS, beware of these tax audit red flags.