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Article: Professionals Can Help Hedge Bets in 'Audit Roulette'.
- Article from:
- Los Angeles Business Journal
- Article date:
- July 10, 2000
- Author:
CopyrightCOPYRIGHT 2000 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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CHANCES are, if you've ever itemized deductions on your income tax returns, you may have already played a small-stakes version of "audit roulette," in which you consider the likelihood of being audited against the value of the deduction.
For example, when you decide to take that "borderline" deduction for your newspaper subscription or for that birthday party business clients attended, you may have placed your bet on the low probability of your return being audited.
Putting aside moral factors, if audit risk is weighed against the chance of the deduction being sustained, there are often rational economic reasons to take aggressive tax positions.
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