Tax Traps Avoid an Audit
#1. Pay taxes on time during the year.
#3. File before October 15th
#4. Match what the IRS has on you
#5. Carefully note the deductions and positions- You must know the rules.
We will all get audited by not following the tax laws on our returns.
-Don’t go to a preparer non-licensed by the state.
-Attorney and CPA’s know the tax law and can best document your return.
Seven tax traps to avoid as they’ll lead to huge penalties from SARS if you’re under tax audit
Tax Trap #1 – Hidden assets that you haven’t included as ‘assets and liabilities’ in your tax return.
Tax Trap #2 – Hidden interest you’ve received on investments and not included when completing your tax return.
Tax Trap #3 – Troublesome lease agreements
Tax Trap #4 – Faulty invoices
Tax Trap #5 – Calculating your provisional taxes incorrectly
Tax Trap #6 – Not declaring fringe benefits such as a car and a house.
Tax Trap #7 – The wrath of disgruntled ex-employees who know the status of your finances.
If you’re facing a tax audit, you’d better make sure you’ve steered clear of these tax traps. If you’ve already fallen into one, own up by explaining the situation to SARS – it’s better than claiming innocence and facing hefty penalties when the truth comes out.