Taxes are a necessary evil - the price we pay for roads, bridges, schools and law enforcement. Audits, on the other hand, feel just plain evil. In an effort to thwart fraud, the Internal Revenue Service audits about one percent of U.S. taxpayers every year. IRS computers are programmed to catch outliers and oddities on returns; any item that falls outside the norm may be flagged so that an IRS employee can review it to see if there's actually a need for an audit. Common red

There are a range of reasons to keep records. In addition to tax purposes, people may need to keep them for insurance purposes or for getting a loan. Good records is useful to: Identify sources of income. People may receive money or property from a variety of sources. Records help them determine the sources of income needed to separate business from non- business income and taxable from nontaxable income. Keep track of expenses. This will help taxpayers identify expenses

What is a tax deduction? A tax deduction helps you to lower taxable income, which results in reduces tax liability.