Looking for some magical spell to cast on your tax returns to ward off audits? Sorry to burst your bubble, but the tax man can’t be deterred by any magical mojo and if there is the need he will call you up, but however, there are a few steps you can follow to keep them off of your tail. The IRS has an eagle eye out for everybody, even if you are the most responsible and contentious tax payer in the world, there is still a chance that they will cast their eyes on you. Nothing gets your heart racing like being a subject for tax return audit. So this means, you should always do everything you can to stay under their radar.
Your chances of being audited is about 0.52%, that’s a very small chance but it’s still a risk you should not want to take. You will never know, the tax man might come after you. Here are a few quick tips for you to keep a low profile and not attract the attention of the IRS.
Neatness is key. If you work for the IRS, would you rather review a tax return in plain handwriting that looks like it was written by a kid on a newspaper, or a neatly printed one from a computer? Of course you would choose the printed one, same is true for all the IRS classifiers. You don’t need to bring out that old typewriter, there are tons of software and tools that you can find to help you out with preparing your tax returns. Neatness is a great quality, the reviewer will feel that you respect their time and they will surely appreciate the effort.
Be accurate. Even though a neat tax return counts, one that is littered with errors is far more worse by a mile. Take your time proofing your tax returns, the numbers should be able to add and subtract without any errors.
Always attach schedule C. If you own a small business, don’t forget to attach a complete Schedule C whenever you are filing your taxes. This document has all the business’ profits and losses written on it and it is the most important document that all the classifiers require that they have whenever they are reviewing the returns of companies whose source of profit are W-2 wages.
Dont forget to document the deductions. Any unusually large deductions should always have proof backing it up attached. These evidences could be copies of any receipts, insurance reports, canceled checks, and even photographs.
Submit your tax returns on the dot. There is literally no reason as to why anybody should waste time and filing tax returns late. This is simply raises ones chances of getting an audit.
Hire an expert. Don’t be too overconfident, you should always consider hiring a tax preparer to work for you and sort things out. They might be quite costly sometimes, but it’s worth noting that they provide a guarantee that you will be safe from audit and any fines and hefty fees that might pop up here and there.
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