A Short Guide on Avoiding Tax Return Audits.
Pondering if there is a special protection spell you could cast on your tax return so it would never be touched by audit? Sorry to burst your bubble, but the tax man can’t be deterred by any magical mojo and if there is the need he will call you up, but however, there are a few steps you can follow to keep them off of your tail. The IRS has an eagle eye out for everybody, even if you are the most responsible and contentious tax payer in the world, there is still a chance that they will cast their eyes on you. Nothing will get your blood moving like getting a notice for tax return audit. So this means, you should always do everything you can to stay under their radar.
There is only a 0.52% chance that you will be audited, as small as that number may be, it’s still wise that you don’t take any risks. You never know when the tax man comes knocking. Here are some steps to make sure you stay low under the radar.
Neatness. Imagine working for the IRS, would you like to review a tax return that was printed from a computer, or a tax return that looks like scribbles made by a child. Of course, we’d choose the one that’s neat and printed and so does the classifiers that work in the IRS. You don’t need to bring out that old typewriter, there are tons of software and tools that you can find to help you out with preparing your tax returns. A neat and well organized tax return means that you respect the reviewer’s time.
Accuracy is key. Even though a neat tax return counts, one that is littered with errors is far more worse by a mile. Take good time in proofing your tax returns, all the numbers should line up, add, and subtract without issues whatsoever.
Don’t forget to attach Schedule C. Attaching a complete Schedule C if you have a small business when filing your taxes is very important. This document contains all the profit and the losses of a business, an important document that classifiers need whenever they are reviewing the returns from the companies that have a source of income from W-2 wages.
Dont forget to document the deductions. On the tax return should be attached proof or evidences that back up any unusually large deductions. These evidences could be copies of any receipts, insurance reports, canceled checks, and even photographs.
Punctuality is a must. There is literally no reason as to why anybody should waste time and filing tax returns late. Being late can actually increase the chance of getting an audit.
Hire a professional. The tips stated above are great steps on how to avoid an audit, but hiring a professional qualified tax preparer is still important. They might be an extra expense, but it’s all worth it as you can guarantee that you will be safe from audit.
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