As income for real estate investors increases, so have IRS audits in these areas. While it is important to minimize our tax liabilities, it is just as important that we do so in the most strategic way to protect ourselves from unwanted correspondence from the IRS.
Today, I want to write about some of the top issues that the IRS is focusing their audit efforts on. These are some of the areas where IRS agents are being trained to specifically focus on in the coming years. It's always good to know what these areas of interests are so that we can plan for and document accordingly in case of a potential audit.