Tips on How to Avoid a Tax Audit

Although rare, being audited by the IRS can be an intimidating process. In order to avoid such a dilemma and reduce the risk of outrageous penalties and interest from the IRS, there are a few simple precautions all taxpayers should follow.

Protecting yourself from a potential IRS audit starts well before you ever file a return. Regardless of whether you are an individual taxpayer or business, you should make sure that all of your documents are properly prepared before filing your taxes each year. Keep records well and orderly. Provide applicable bank statements and other documents for all of your claimed deductions.

Most importantly, working with a professional tax preparation specialist or accountant is the best way to ensure that you are in compliance with the IRS. A reputable tax expert can help make sure that you are claiming the proper deductions and avoiding red flags that may cause the IRS to zoom in on you specifically.

Of course, in the event of an audit it is critical to not attempt to go at it alone. A tax expert will be able to represent you and help you avoid incriminating yourself during the audit process. Often, individuals who attempt to confront the IRS alone end up making costly mistakes that result in further liabilities and interest.

Leave a Reply

Your email address will not be published. Required fields are marked *