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12 tax audit red flags

To avoid catching the attention of the IRS, beware of these tax audit red flags.

You do a lot of 'work-related' driving

taxes red flags work related driving

With gas prices so high, who wouldn't want to write off all of their driving costs? But unfortunately, you can only deduct gas costs if the driving you did was for business purposes.

Buckingham had a client who owned a catering company and claimed every single trip to the grocery store as a business expense, even when some of those trips were to pick up her own groceries. Those driving costs really added up -- to the point where they created a loss for the business (on paper) since it was making so little income.

So Buckingham and the client had to go through the grocery receipts and separate the personal shopping from the business shopping and claim the gas costs accordingly.

Have you had a nightmare experience with your taxes? From tax preparer mistakes to audits -- or worse, e-mail blake.ellis@turner.com to share your story.

Illustrations by Kacy Belew
  @blakeellis3 - Last updated March 21 2013 12:52 PM ET

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