Wednesday, November 9, 2011

What are my chances of being audited even though I owe.?

This is the first year I have ever owed the IRS. 5,000.00 to be exact. In 2010, I settled with several credit card companies and gave back my three time shares. I've recently received several 1099c forms of cancelled debt and included them on my 2010 tax filings as taxed income. Wow! My taxable income shot up $45,000.00. I usually earn $96,000-100,000 a year. This year my taxable income is $143,000.00 including all of my cancelled debt. Is this going to raise a red flag? I know the IRS usually audits people when they have a larger than normal gain of income from one year to the next. Does this qualify?

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