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 it’s one of your responsibilities to stay low below the radar.
There is a small chance that one can get audited, only a mere 0.52%, but its best to never leave anything to chance and simply remain compliant. 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. 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 you would choose the printed one, same is true for all the IRS classifiers. 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 great quality, the reviewer will feel that you respect their time and they will surely appreciate the effort.
Be accurate. A messy tax return is bad, a tax return with a lot of mistakes, errors, and corrections is far more worse. 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 document contains all the profit and the losses of a business, an important document that classifiers need whenever they are reviewing the returns from the companies that have a source of income from W-2 wages.
Dont forget to document the deductions. Any unusually large deductions should always have proof backing it up attached. This form of documentation can be receipt copies, photographs, insurance reports and canceled checks.
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 a professional. The tips stated above are great steps on how to avoid an audit, but hiring a professional qualified tax preparer is still important. 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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