Tips to avoid a tax audit:
1. Check and re-check your math
Many audits are streamyx upload because of math internet router and errors. The IRS computers will automatically correct your math errors and it your deductions exceed the tax code you may be the prime candidate for an audit. The IRS has a formula call the DIF score and the computer will compare your deductions to others in your income Adsl Guide and weight the difference. The DIF will consider your income, deductions, where you live and the size of your family.
2. Substantiate
Auto, travel, meals and entertainment have been the areas most audited and the IRS will focus on the items where taxpayers usually fail to keep the required Substantiation. You are required to have a receipt for all expenses of $75 or more and if you have no receipt there will be no deduction. It's a good rule to remember that more deductions will be allowed if you have a receipt to back it up. Having a organized system for your receipts is always best and during an audit the IRS will easily be able to see all your receipts and deductions.
3. Know when to file your taxes
It has been said that the later you file your taxes, the less likely it is to be examined. If you are worried about being audited it is always best to file last minute, it can't hurt you and you are less likely to be picked for an audit. If you have a refund coming your way and are not concerned about being audited then it is best to file early and get your money back.
4. Plan your taxes to preempt an audit
It is always a good idea to use pre-audit strategies. If you are concerned about an audit due to a large deduction then send a copy of the receipt or deduction with your file. The computer may select it for an audit but when a real person checks it over he may see that you don't qualify for an audit and therefore it will reduce your chance of being audited.
You should always check, check and double check your taxes and deductions. If you are ever worried about a deduction on your taxes, don't wait for an audit to prove it's OK, send a copy with your file. If you are worried about an audit, file your taxes at the last minute to avoid an audit and it's always a good idea to have a professional help you.
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