Getting To The Point –
Avoid Tax Return Audits – A Short Guide
Are you wondering if there’s a specific magical spell to ward of audits from your federal tax returns? Sorry to burst your bubble, but the tax man can’t be deterred by any magical mojo and if there is the need he will call you up, but however, there are a few steps you can follow to keep them off of your tail. You can be the most responsible and contentious tax payer in the whole universe and still be susceptible to the sharp gaze of the IRS. Nothing gets your heart racing like being a subject for tax return audit. So this means, you should always do everything you can to stay 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 a few quick tips for you to keep a low profile and not attract the attention of the IRS.
Neatness. If you work for the IRS, would you rather review a tax return in plain handwriting that looks like it was written by a kid on a newspaper, or a neatly printed one from a computer? Yes, we’d choose the one that is neater which is the printed one, and so will the classifiers that work at 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. 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. 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. Attaching a complete Schedule C if you have a small business when filing your taxes is very important. This is an important piece of document that all classifiers require whenever they review the returns from the companies whose source of profit is W-2 wages, this document contains all of the losses and the profits of a business.
Document the deductions also. Any unusually large deductions should always have proof backing it up attached. This can be any piece of document such as receipts, canceled checks, photographs, and insurance reports.
Submit your tax returns on the dot. 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. 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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