The Best Ways to Avoid Being Audited

Google+ Pinterest LinkedIn Tumblr +

Each and every tax season, a small percentage of taxpayers are audited. In some cases, the people are randomly chosen and others are chosen due to red flags seen by the IRS. To be honest, the only thing you can do to avoid being audited is be prepared. Make sure you have all the proof you need to show that you were 100% honest with your write offs and income.

Fist off, don’t ever lie about your income. The IRS has paperwork in which they match up your earnings with what was actually reported. So, don’t exaggerate or lie about your income, as this can be a red flag to the IRS.

It’s also best to be careful when writing off expenses. If you have a small business and need to write off meals, gas and supplies, you shouldn’t go overboard, as this could be a red flag and get you audited. Go through all of your receipts and highlight the items that can actually be written off, then categorize them and save them in case you are audited. As long as you have solid proof, you should be okay.

Last, don’t just double check your work once, look over it several times before submitting it. Just one little error in your social security number or any numbers, can get you audited for sure. So, take your time when entering the information from your W-2’s and look over it several times.

So, avoid causing those red flags that can cause you to be audited. Yet, most importantly, always be prepared just in case, by being honest and saving all necessary paperwork.


About Author

Leave A Reply