Alimony and Deductions Are the Two Big IRS Red Flags in 2015 for a Tax Return in Galt CA


The chances of being audited by the IRS in the early months of 2016 are unlikely. It is a less than 1% chance. But, that should not right a ticket to relax or fudge the numbers. It also could mean that a perfectly legitimate tax filing could be flagged for an audit. What are some strategies that could by deployed in a Tax Return in Galt CA for 2016 that would avoid the crumbling nightmare of a tax audit.

Managing Deductions

Deductions lie at the very heart of reducing total profit and, ultimately a total tax payment. They remain at the very top of the IRS’ focus, and they should be reasonable. All tax write-offs should be logical, even if the documentation cannot be provided. For example, donations are a great write-off. But, what if one does not have the paperwork? They can still write-off donations, but they should be able to offer addresses and specific items. The donations could be unrealistic. But, what if a change of address was reported? The donations for furniture, office supplies, and many others may then seem logical. High donations are weary, and they should ideally be backed up. But, that does not mean that a lack of paperwork makes deductions obsolete.


Alimony is a major area of contention because there are very few clear rules that designate when alimony can be written off and when it cannot. These details exceed the contents of this article, but they do illuminate a major point. Any alimony write-off should be managed by a qualified Tax Return in Galt CA agent. It may be the only way to deliver this write-off effectively and not return in a rejected claim. Alimony write-offs require collaboration between both parties, and that will be reviewed. For example, the person obtaining it must file the same amount that was written off by the other party. That further complicates the issue. Click here for more details.

A Galt CPA can help navigate these waters. Visit galtcpa.com to get an overview of tax season, and to potentially file early to be prepared for the tax obstacles coming around in 2016. Prepared filers that show initiative also show transparency, and an ability to convey trustworthiness in their reports.

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