Avoid These Red Flags Avoid an IRS Tax Audit. Joe’s Tips
You may reduce your chances of being audited by preparing your tax return accurately. It is very important not to submit a careless tax return.
When claiming your deductions and tax credits:
- Filing a schedule “C”
- Being a Truck Driver
- Math errors on returns
- Not matching the return to what was reported to the IRS
- Not enough income to cover living expenses
- Use the correct numbers. Avoid rounding numbers.
- Check your math computations. Some reasons for audits are based on math errors.
- You may attach explanations for deductions and tax credits that the IRS may consider questionable.
- Report all your income. If you plan to save money on income taxes, it is better to have a tax preparer help you get all the deductions you are entitled to. The IRS allows many deductions that taxpayers are not even aware of it.
- Hire a tax professional to represent you before the IRS. In many cases, you don’t even have to be present. Your tax representative can speak for you.
- Be careful in reporting home office business deductions. If you are thinking of putting your money in banks overseas, in tax haven countries, where your income is “away” from the IRS, think again! Currently, the IRS is targeting offshore bank users, when selecting tax returns for audit.
- Respond to the tax audit letters in a timely manner. Consider hiring a CPA or Attorney.
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