A Short Guide on Avoiding Tax Return Audits.
Are you wondering if there’s a specific magical spell to ward of audits from your federal tax returns? 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 gets your heart racing like being a subject for tax return audit. So being a responsible taxpayer, its good that you do all necessary steps to stay low under their radar.
There is a small chance that one can get audited, only a mere 0.52%, but its best to never leave anything to chance and simply remain compliant. You never know when the tax man comes knocking. Here are a few quick tips for you to keep a low profile and not attract the attention of the IRS.
Be neat. If you work for the IRS, would you rather review a tax return in plain handwriting that looks like it was written by a kid on a newspaper, or a neatly printed one from a computer? Of course you would choose the printed one, same is true for all the IRS classifiers. But no need for you to break out the trusty typewriter, there are a bunch of software that can be found to help you out with the job. Neatness is a good trait for somebody to have and this will also be a sign that means you respect the reviewer’s time and they will surely appreciate it.
Be accurate. 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.
Schedule C is important. If you own a small business, don’t forget to attach a complete Schedule C whenever you are filing your taxes. This is an important piece of document that all classifiers require whenever they review the returns from the companies whose source of profit is W-2 wages, this document contains all of the losses and the profits of a business.
Dont forget to document the deductions. On the tax return should be attached proof or evidences that back up any unusually large deductions. This form of documentation can be receipt copies, photographs, insurance reports and canceled checks.
Submit your tax returns on the dot. There is literally no reason as to why anybody should waste time and filing tax returns late. This just raises the chances of getting an audit.
Hire an expert. Don’t be too overconfident, you should always consider hiring a tax preparer to work for you and sort things out. They might be quite costly sometimes, but it’s worth noting that they provide a guarantee that you will be safe from audit and any fines and hefty fees that might pop up here and there.
Read more about irs audits.