Audit and Section 181 Film Deduction

[ldlittman]

So, I am working on my taxes and I have a schedule C where I have paid quarterlies, I also have a schedule C for a Film Production LLC we funded entirely with our savings. I am still working and gathering forms for my taxes, but I see,  because of the Film expenses, we are getting money back AND I went to the Audit Alert section and it was in the RED...it never is. I will attach the 181 Miscellaneous Statement to my return.  I thought I paid for Audit Defense this year when I bought my Turbo Tax but Turbo Tax is trying to ask me to buy it, so I am confused about that too! AND I'm in a panic about an audit since I am in the red. Do I need to worry about an audit because of the 181 Film Production?  I have proof for all my deductions.

[DaveF1006]

No, if you have substantiated proof on all your deductions, you shouldn't need to worry.  The Red flag is only a warning that you may be audited based on the information reported but if you have proof, you shouldn't need to worry in case if you are audited. 

As far as Audit Defense, it is an extra charge but is worth the money if you prepare a return that may present a red flag.  To purchase, you will need to go to Review then Audit Protection. It is not included in the initial purchase of your Turbo Tax product. We do have an accuracy guarantee provision that guarantees that all calculations are correct in the program based on the information presented by you. Accuracy guarantee and Audit Defense are not the same thing.