Most people dread the prospect of being audited by the Internal Revenue Service. Countless individuals will never be subjected to an IRS audit, but taking certain steps to avoid such an experience is not a bad idea. Those who seek to prevent an intensive examination of their financial records may wish to explore a few easy tips on how to avoid a tax audit.
File Correctly and Completely
One of the best ways to prevent an audit is to file taxes properly. Rushing through them so that they can be done quickly is not a good practice. A person would be well advised to set aside plenty of time to prepare a tax form correctly. Gathering all of the needed documents, from employment information to receipts for charitable donations, is essential. Mailing an incomplete or inaccurate form to the Internal Revenue Service could lead to an unwelcome visit from an IRS auditor. If a person files the wrong form, attention may be directed toward that individual’s tax records.
Exercise Caution Regarding Deductions
Another sound practice is to be especially careful when listing deductions. If someone is listing a deduction that is high in relation to income, the IRS may choose to investigate the matter. However, IRS workers know that sometimes higher deductions are valid, so providing a detailed explanation as to why a deduction is high could curtail the probability of an audit. Providing a document that proves why a deduction is so high is also a wise action to take. A person can make a photocopy of the document and send that to the IRS, so the original item may be securely saved for future reference.
Be Wary of Advice
Advice from friends, relatives and coworkers might be useful, but it is not always relevant. Implementing a tip from a colleague could lead to trouble with the IRS. The best person to consult is a qualified tax professional. Much information can be found on the IRS website, as well. If an individual has questions and cannot find the answers online, the IRS has employees who are also available to assist people. Simply calling the national phone...