The Top 5 Ways to Avoid a Tax Audit

Views:
 
Category: Others/ Misc
     
 

Presentation Description

There is no way to 100% protect yourself from an audit, but there are things you can do to lower your chances. Here are some examples.

Comments

Presentation Transcript

5 Ways to Avoid a Tax Audit :

5 Ways to Avoid a Tax Audit There is no way to 100% protect yourself from an audit, but there are things you can do to lower your chances. Here are some examples:

Don't Leave Out Information:

Don't Leave Out Information The IRS gets copies of 1099 forms and other forms that detail every bit of income you receive. IRS systems crosscheck those figures with what you report on your tax return. Discrepancies or missing information can trigger a tax audit.

Don't Be Extreme:

Don't Be Extreme If you claim an abnormally high deduction such as for donations for charity or expenses for your home office, don’t be surprised if the IRS wants to take a closer look and make sure it's legit.

Don't be Unorganized:

Don't be Unorganized If your return is illegible to both the people and the processing systems at the IRS, the IRS will come back to you with questions.

Don't Make Simple Errors:

Don't Make Simple Errors You don’t want to catch the IRS ' attention because your math in some section doesn't add up, or because you accidentally left out your Social Security number.

Don't think it's OK to not file a return:

Don't think it's OK to not file a return Even if you have no income, you need to file a return, showing that. But be aware that reporting no income will increase your odds of being audited. In 2014, about 5.3% of returns with no income were audited .

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

To Learn More Visit www.reliancetaxgroup.com Or Call (877) 597-0153 Work Cited: Maranjian , Selena. “The Tax Audit: 5 Ways to Avoid It.” The Motley Fool. The Motley Fool, 7 March 2016. Web. 6 April 2016. <http://www.fool.com/investing/general/2016/03/07/the-tax-audit-5-ways-to-avoid-it.aspx>

authorStream Live Help