Tips on How to Avoid Tax Return Audits
Looking for some magical spell to cast on your tax returns to ward off audits? Im sorry to tell you, but there is no spell in this word that keeps the tax man away from you and that he will come when he needs to conduct a review, but don’t worry, there are some preemptive measures one can take to keep them away. Any body can get the attention of the IRS, even the most responsible, contentious, and diligent of tax payers. Nothing will get your blood moving like getting a notice for tax return audit. So being a responsible taxpayer, its good that you do all necessary steps to stay low under their radar.
Your chances of being audited is about 0.52%, that’s a very small chance but it’s still a risk you should not want to take. You will never know, the tax man might come after you. Here are some steps to make sure you stay low under the radar.
Neatness is key. 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 you would choose the printed one, same is true for all the IRS classifiers. You won’t be breaking out the old typewriter however, there are other great software and tools that can help you out. 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.
Accuracy is key. A messy tax return is bad, a tax return with a lot of mistakes, errors, and corrections is far more worse. Take your time proofing your tax returns, the numbers should be able to add and subtract without any errors.
Don’t forget to attach Schedule C. If you own a small business, don’t forget to attach a complete Schedule C whenever you are filing your taxes. 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. 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 is simply raises ones chances of getting an audit.
Hire a professional. Never assume that you will do a perfect job every time, to stay on the safe side of the spectrum, hire a qualified professional tax preparer to do the job for you. 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.
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