4 Ways to Avoid an Audit Your chances of being audited by the IRS are low, but the possibility always exists. The time, place, and manner of the audit are negotiable, but by far the easiest way to deal with an audit is to prevent one in the first place. As we move into tax season, here are a few ways to do just that: to the government, and if you don’t report it when you file, there will be a mismatch in documentation and your chances of an audit will increase. AVOID CLAIMING LARGE CHARITABLE DONATIONS
AVOID UNSCRUPULOUS TAX PREPARERS
The IRS doesn’t have to work very hard to audit you if you claim large charitable donations. All they have to do is request substantiation by mail. This ease of auditing makes you a target to the IRS when you claim large donations. AVOID TAKING A REPEATED LOSS ON A HOME-BASED BUSINESS If a business loses money three out of five years, the IRS classifies that business as a hobby, and once your business has been put in this category, you are no longer eligible to benefit from deductions meant to stimulate business activity.
FILE ON TIME Filing on time means your return will be
If something seems too good to be true, it probably is. When specific tax professionals are consistently generating large refunds, the IRS will audit all of their clients, not just one. Be careful who you hire. Being audited by the IRS can be a lengthy, painful, and costly experience. At the Law Offices of Steven A. Leahy, we deal with the intricacies of the IRS on a regular basis, and we are ready to help you make it through the process as painlessly as possible.
processed alongside the rush of returns being filed around tax time. If you file late, your taxes will be looked over by a person who has more time to slow down and take an actual look at the details. This heightens your risk of an audit. REPORT ALL INCOME Once a company has paid you over $600, they are required to issue either a 1099 or a W-2. The company that issued payment will then report those documents Don't forget to listen to the "IRS Radio Hour" every SUNDAY AT 5 P.M. ON AM 560 THE ANSWER
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