Getting audited by the IRS can be an overwhelming and inconvenient experience. There are certain red flags the IRS looks for when deciding which taxpayers to audit. Below we list a few ways to reduce the risk of getting audited by the IRS.

  1. tax audits IRSDouble check your tax return: Make sure that you have accounted for all your income for the year, whether it be income from a full time job, interest earned on your savings, gambling winnings, or any other type of income. Also be sure that your math is correct and your personal information is accurate.

     

  2. Be careful with your tax deductions: Don’t be afraid to claim legitimate tax deductions, but don’t stretch it either. If you only used your personal vehicle occasionally for business purposes, don’t claim it as a vehicle used 100% for business purposes. Be sure to follow the IRS’s rules for what you can and cannot deduct from your tax returns.

     

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  3. Don’t lie: If you earned income from a side job after regular work hours, be sure to declare that revenue. If you didn’t donate money to charity, don’t claim you did to get an extra tax deduction. The IRS is pretty good at finding tax fraud, and the penalties can be steep.

     

  4. Have a tax professional prepare your taxes: Tax law is complicated, and not always easy for the average person to understand. If you hire a tax professional for tax preparation you reduce the risk of errors, improper deductions, or other mistakes that may cause an IRS tax audit.

     

If you  need help with tax preparation, call Saint Louis CPA James Coats today at (314) 645-1614.