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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. 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. Nothing gets your heart racing like being a subject for tax return audit. So being a responsible taxpayer, its good that you do all necessary steps to stay low under their radar.

There is only a 0.52% chance that you will be audited, as small as that number may be, it’s still wise that you don’t take any risks. You never know when the tax man comes knocking. Here are some steps to make sure you stay low under the radar.

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 is key. Even though neatness is a great factor, a erroneous tax return is worse by a far stretch. Take a good amount of time whenever you are performing any proofing on your tax returns, make sure that all the numbers line up and should easily add and subtract without any issues.

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 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.

The deductions also count. There should be proof to back up any unusually large deductions present on the tax return. These evidences could be copies of any receipts, insurance reports, canceled checks, and even photographs.

Be punctual when filing your tax returns. There is not a single reason why anyone should choose to be late when they file for their returns. Being late can actually increase the chance of getting an audit.

Hire an expert. 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 an extra expense, but it’s all worth it as you can guarantee that you will be safe from audit.

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