@DolceDolce wrote:
.....I thought I read somewhere that the 'catch all' category should not be more than a certain % of income or it triggers a red flag.
Essentially, that is applicable to all of the categories.
For example, if you reported $100,000 as income and $50,000 as advertising expenses, that would probably raise that same red flag.
Regardless, the most you are likely to get out of this scenario would be a correspondence audit, and your response would simply be copies of the receipts from your expenditures.
