How to Avoid a Tax Audit?

How to Avoid a Tax Audit?

While audits are rare most taxpayers will like to avoid all together, thought the percentage of people that are audited are very small, but if the IRS decides to audit you, there is little to stop it.

It is possible to avoid scrutiny by IRS if you submit detailed tax audit report that will not lead to questioning the figures and data in the then report.

The fact is you can avoid tax audit if you can observe the following advice before submit your next report to tax office and avoid tax audit services in the process.

Want to avoid a Tax Audit? Know how:

Accurate figures

Data entry full of errors will attract attention from tax office, so double check your fact before you submit your document, you may need the help of best tax CPA firm if you have income from multiple sources and you may not be able to put everything together in the right way.

Unsigned return

Failure to sign tax returns will definitely lead to questions. You are telling them you are not aware of what you submitted and in the future, you can win any legal case against IRS since you sign form you submitted or you can claim you were not the one that submitted it.

Outrageous deduction claims

Is a fact that IRS encourages people to donate things to charity, like automobiles, clothes, furniture, and other gifts, but over stating donations without concrete supporting evidence will surely trigger an audit. Seeking deduction from in respect of donations done is expected not to be more than 30% of the actual market value of these items.

Calculation error

This may sound awful, but many returns are selected for audit due to calculations errors. Therefore, when filing tax returns, make sure the columns add up. Moreover, ensure that the capital gains and lose are clearly calculated to reduce curiosity about the return.

Avoid under reporting income

It is tempting to exclude some earnings from a tax return, but it is safer to report all income that accrues during the year including sales of assets and rents. If you are caught that you under paid, you will pay the balance and penalties, if you are lucky to avoid a jail term.

It is better to avoid tax audit than to be a subject of serious scrutiny and possibly legal action, you can avoid the unnecessary attention of tax audit by paying your taxes in full.

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