03 March 2012

How To Stay Away From Any Tax Audit

How To Stay Away From Any TAX Audit - It would be greatly helpful to hire the services of an Arizona Tax Attorney or a CPA to help you sort out any discrepancies in your tax returns or when you need guidance in filing them. You will not need to go through an audit or IRS investigation alone when they are there to protect your rights as a taxpayer

When choosing a tax return for audit, the Internal Revenue Service often looks for red flags to alert them when something is amiss. While one can never completely avoid getting audited, there are some tips that might help in reducing the chances of you receiving a Notice of Audit. It is also better that something will not happen rather than have it occur and deal with it too late. There are cases when an audit will yield nothing but not going through an audit is immensely gratifying. 

Some of you might not realize it but there are certain behaviors that make the IRS question you return. To be able to avoid the scrutiny of the IRS, you may need to keep the following tips in mind: 
  • Be thorough and neat in filing your tax return. Avoid calculating your taxes hastily. The most common causes for a tax audit are math errors. Double and triple check your figures to ensure that the financial data you placed is correct and accurate.
  • Report all your income. This greatly applies to self-employed individuals who are sometimes tempted not to file all of their income. Through an audit, the IRS can determine which of these people have hidden incomes. This income may be placed in your 1099 and those that cannot be found in there are placed under the 1040.
  • Do not exaggerate your deductions. Generally, if you have deductions that are more than half of what you earn, you will likely get an IRS audit. To know which deductions you are allowed to take, you may discuss it extensively with a tax lawyer or a certified accountant.
  • Explain items that are questionable in the eyes of the IRS. The possibility of an audit will likely decrease if you include a narrative that explains the presence of these suspicious financial details. When your deduction and the circumstances behind it is explained reasonably to the IRS, they may overlook it and not send an audit.
  • Hire expert help. It would be greatly helpful to hire the services of an Arizona Tax Attorney or a CPA to help you sort out any discrepancies in your tax returns or when you need guidance in filing them. You will not need to go through an audit or IRS investigation alone when they are there to protect your rights as a taxpayer.

    How To Stay Away From Any Tax Audit

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