How to Avoid an IRS Tax Audit

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An audit is unlikely to happen, but here's how to further decrease your odds of catching the IRS's attention. You can follow these top 7 tips to avoid an IRS audit.

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Tax Tips to Avoid an IRS Audit :

Tax Tips to Avoid an IRS Audit An audit is unlikely to happen, but here's how to further decrease your odds of catching the IRS's attention. Source : Frankel, Matthew. “7 Tax Tips to Avoid an IRS Audit.” The Motley Fool. The Motley Fool, 14 January 2016. Web. 29 January 2016. <http://www.fool.com/investing/general/2016/01/14/7-tax-tips-to-avoid-an-irs-audit.aspx>

Report All of Your Earnings:

Report All of Your Earnings Falling to report income from a W-2 or 1099 is an easy way to get audited. The IRS receives copies of all W-2s and 1099s that are given to you, and if the numbers don't match up, you're asking for trouble.

Over-Document Your Tax Breaks:

Over-Document Your Tax Breaks  If you have any tax deductions or credits that could be considered unusual, be sure to  thoroughly  document every penny you claim.  A good idea could be to collect all of your documentation, even if it's not required. 

Careful Claiming Business Use of a Vehicle:

Careful Claiming Business Use of a Vehicle If you are self-employed or own a business, you are allowed to take a deduction for the business use of your vehicle . While there is nothing wrong with this, claiming that you use your vehicle for business 100% of the time is sure to raise some eyebrows.

Try to Avoid Filing an Amended Return:

Try to Avoid Filing an Amended Return If you forget to claim a deduction or credit, or need to make any other corrections after you file your return; you have the option of filing an amended tax return.  Try to avoid this situation if possible. 

Double Check your Numbers:

Double Check your Numbers Mathematical or typographical errors are a major red flag. If you use a software program to file, it generally does the mathematics for you, but typos like this are still possible.

Electronically File Your Return:

Electronically File Your Return Most  taxpayers now file their returns electronically. However, there are still a significant number of people who use paper forms-- particularly older taxpayers and those with simple (1040EZ) returns. The data shows that 21% of paper returns contained errors. For electronic returns, the error rate is just 0.5%.

Be Honest:

Be Honest This should be obvious, but the best way to avoid an audit is to be 100% honest when filling out your tax return. If you exaggerate your deductions, misstate numbers, or worse, simply guess how much of a deduction you're entitled to, it's likely to come back to bite you.

To Learn More Visit www.reliancetaxgroup.com Or Call Now (877) 597-0153 :

To Learn More Visit www.reliancetaxgroup.com Or Call Now (877) 597-0153 Source: Frankel, Matthew. “7 Tax Tips to Avoid an IRS Audit.” The Motley Fool. The Motley Fool, 14 January 2016. Web. 29 January 2016. <http://www.fool.com/investing/general/2016/01/14/7-tax-tips-to-avoid-an-irs-audit.aspx>

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