brett
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Apr 24, 2010
- Messages
- 5,926
So, you typically have 2-4 years of tax returns. If the taxpayer consistently donates large sums to certain denominations that are well known for tithing, then that is a good clue as to what the income should be. This assumes that the tithe is 10 percent.
So, if a person consistently had donations of say $6000. per year to XYZ church, and at the same time was only reporting income of $25,000 then chances are fairly good that the return would be examined and potentially audited.
Alternatively, some disreputable church members have been know to 'sell' tax receipts. These people do it often and become known. So if a return is pulled with a huge donation receipt (not for an in kind donation) and there have been little or no donations like this in the past, then chances are that that the return and and organization that provided the receipt will get looked at.
So, if a person consistently had donations of say $6000. per year to XYZ church, and at the same time was only reporting income of $25,000 then chances are fairly good that the return would be examined and potentially audited.
Alternatively, some disreputable church members have been know to 'sell' tax receipts. These people do it often and become known. So if a return is pulled with a huge donation receipt (not for an in kind donation) and there have been little or no donations like this in the past, then chances are that that the return and and organization that provided the receipt will get looked at.