One of the major fears of an average American, is when taxes are concerned is that of an IRS tax audit.
Over the years, people come up with a number of ways of avoiding a tax audit.
The following are a few simple tips, in order to avoid a tax audit.
Now, even when we are confident that you can file your taxes properly, you keep wondering as to when, you would re required to receive a phone call, as well as a letter from the an IRS representative.
So, you might worry a little bit lesser this tax season.
A few types of taxpayers have been much likely to be audited, than in case of others.
They involve taxpayers who earn in excess of 200,000, small business owners as well as self-employed taxpayers.
It also includes taxpayers who might be hiding the taxable income overseas.
A major catalyst, in regard to tax audit is by having high deductions, in comparison with the other taxpayers within the same tax bracket.
As it is, one can account for high deductions, caused due to attachment of a receipt or in other cases,Now, since the documentation to the tax return.
While an average deductions might make way for an audit, being proactive, as well as reduction of the chances of getting audited.
Do not be afraid to deduct the expenses, which tend to be legally deductible.
Instead, you can make sure that you can justify the sum of your deduction.
You should write checks wherever possible and keep up a copy of the cancelled checks in your records.
You can make use of tax preparation software.
You can take up Tax prep soft wares, such as TurboTax, which eliminate the calculative errors, which may lead to an audit.
As it is, they may also do a study of the tax return to let you realize that any items which could trigger an audit.
You should be aware that tax software can not completely eliminate the chances of getting audited as the IRS computer systems audit a number of random taxpayers each year.
You can make use of a reputable tax preparer.
As it is, you may not have an idea, as to what kind of reputation a particular tax preparer has made up with the IRS.
Make sure that your tax preparer must be experienced with the filing of the kind of return, which you need.
You may find out about the audit record at the preparer.