when submitting your tax forms you can deduct the interest paid on your house, and the taxes. by that amount you claim i would assume that, like you said, with the computer fomula they can tell that, hey this guy cannot afford a $300,000 house. he claimed his net income was $15,000.
i have always assumed that their system is like ebay and paypal. there really isn't too many people analizing everything you do, but they are alerted by a computer that says you should be looked into more closely.
yeah, thats' what i try to do, is be truthful on the returns. i'm too paranoid not to.
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