A Short Guide on Avoiding Tax Return Audits.
Looking for some magical spell to cast on your tax returns to ward off audits? Im sorry to break the news but no abracadabra can keep mister tax man from calling you up if he needs to, but there are some preemptive steps you could take to shake them off however. 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. Getting a notification from the IRS for a tax return audit can get anybody’s blood moving. So it’s one of your responsibilities to stay low below the 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 never know when the tax man comes knocking. Here are a few ways to ensure that it’s not you they will be coming after anytime soon.
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, we’d choose the one that’s neat and printed and so does the classifiers that work in the IRS. 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. A neat and well organized tax return means that you respect the reviewer’s time.
Be accurate. Even though neatness is a great factor, a erroneous tax return is worse by a far stretch. Take your time proofing your tax returns, the numbers should be able to add and subtract without any errors.
Schedule C is important. If you own a small business and are filing your taxes, don’t forget to attach your complete Schedule C. This document has all the business’ profits and losses written on it and it is the most important document that all the classifiers require that they have whenever they are reviewing the returns of companies whose source of profit are W-2 wages.
Dont forget to document the deductions. Any unusually large deductions should always have proof backing it up attached. These evidences could be copies of any receipts, insurance reports, canceled checks, and even photographs.
Punctuality is a must. There is not a single reason why anyone should choose to be late when they file for their returns. This is simply raises ones chances of getting an audit.
Hire a tax preparer. 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.
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