When its tax season time, we want to stay away from tax auditing. How can you stay from tax auditing? If you have a large business, you might get audited if you didn’t follow direction or if you have too high of a deduction that doesn’t look like it can be authentic. If you’re regular employees, you might not get audited if you don’t make over a certain amount of salary range. It cost them money to hire an auditor too.
If you make more than $60k a year, you have a higher chance of getting audited. If you make a high income, you should pay attention to your tax and make sure they’re legal and good to go. It can be troublesome when you get audited. If you do everything right and reasonable then you won’t get audited. If you do it wrong then you will get audited. If there’re signs of fraud, you will also get audited. This is why you should have all recorded saving so you can be prepare if you get audited. When you get audited, they will need your record. Once you have your records, you can defend yourself better.
You can get into more trouble if you can’t provide proofs for your audit. They will always need to see proof. It’s important for you to have them. You need to save all of your files in a yearly folder and keep them for at least 6 years. The irs has several years to audit you. They can audit you three years from now. It’s important to create records if you don’t have them.