The employer are harmed by dishonest expense submissions
Caution: Deductions Increase Your Audit Risk
Work-related deductions may draw an IRS audit, especially if expenses are large in relation to income. Some of MacMillan's clients in sales take more than $20,000 in mileage deductions. "Although the IRS doesn't disclose how they score returns for audit, that's got to score high.“
According to Le Valley, "The biggest audit trigger is going to be the difference between last year's return and this year's."
The key is to keep complete records, following IRS rules. Still, you should deduct what you're entitled to. Even when an expense seems unusual, if it's legitimate and well-documented, taxpayers shouldn't fear claiming the deduction, Le Valley says.