The IRS will do an audit on your tax return either because they have nothing better to do, and they choose you at random, or they find something that begs for questioning in your tax return. Never the less getting audited by the IRS is never a fun ordeal, for the person whose tax return is getting audited, or the tax experts providing tax audit protection. Still there are ways to not allow your tax return to get audit… who am I kidding, there is no way for you to not be audited. But there are ways for you to show green light indicators to the IRS that say “hey look at my tax return! Nothing about it is fishy!” These green light tips will make your audit less likely to happen, so without further ado, let’s get to tip number one.
Your Expenses and Deductions Shouldn’t Be Exaggerated
Make sure that the expenses you make, are actual and legitimate expenses used for the legitimate intentions of its use. Don’t buy yourself a car, and report it as a company’s car, just because you put your company’s name on it. If you use that car for your personal affections, such as taking your kids to baseball games, etc., you will be questioned by the use of that car, and it will not be suffice for the IRS agent to accept it as a scheme of advertising if you drive that car with your company’s name on its bumper sticker. Be legitimate about your expenses and deductions.
Why Hide Your Income? Let Them Know It
More than likely, individuals who earn more than $100,000 USD’s per year are more likely to get audited by the IRS than those who make less than that. So trying to portray yourself as an “individual” who makes less than $100,000 by being slyly, and hiding your income in an off shore bank account tax haven, or putting an investment in your child’s name (don’t get me wrong here, if you are putting money into your child’s name, intending it to be for your child, more power to you!), the IRS has ways to find out whether or not you’re being fraudulent or legitimate with your tax claims. So please, don’t lie to the IRS about your income. You can be sly, but the IRS is pretty sly themselves.
Quadruple Check the Math
A small innocent mistake, such as miscalculating a number on your taxes can draw the IRS’s attention. Make sure that all your IRS forms and schedules are completely filled out. Great records that you have been holding onto (for your personal keep), must incline that they are also accurate. Being accurate with your records will show a legitimacy to your expenses, deduction, and other claims.
Last but Not Least, Tell the Truth
This can sum up pretty much the whole entire article. Always tell the truth to the government… I mean the IRS. There is no point for you to step your bounds by hiding things from the government… I mean the IRS, or to exaggerate your claims. Did you know an IRS whistleblower will obtain up to 30% of the additional taxes found?! These guys and gals at the IRS are feigning to find fraudulent use of people’s tax returns. So, do not over exaggerate your claims, don’t inflate your income nor underreport it, don’t claim dependent’s that aren’t yours to claim either. The headache you will end up with doing audit protection and handling the IRS will not be worth the money you save in the beginning.
These simple steps will create the best audit protection you can afford, which is not being considered for auditing by the IRS in the first place.