際際滷

際際滷Share a Scribd company logo

Tax Tips to Avoid an IRS Audit

Download as PPTX, PDF
Reliance Tax Group
Reliance Tax Group

An audit is unlikely to happen, but here's how to further decrease your odds of catching the IRS's attention. You can follow these top 7 tips to avoid an IRS audit. For more information visit our website: http://www.reliancetaxgroup.com/ You can also follow us on : Twitter: https://twitter.com/Reliance_Tax Facebook: https://www.facebook.com/RelianceTaxGroup

1 of 9
Download to read offline
Tax Tips to Avoid an IRS Audit An audit is unlikely to happen, but here's how to further decrease your odds of catching the IRS's attention. Source: Frankel, Matthew. 7 Tax Tips to Avoid an IRS Audit. The Motley Fool. The Motley Fool, 14 January 2016. Web. 29 January 2016. <http://www.fool.com/investing/general/2016/01/14/7-tax-tips-to-avoid-an-irs-audit.aspx>
Report All of Your Earnings Falling to report income from a W-2 or 1099 is an easy way to get audited. The IRS receives copies of all W-2s and 1099s that are given to you, and if the numbers don't match up, you're asking for trouble.
Over-Document Your Tax Breaks If you have any tax deductions or credits that could be considered unusual, be sure to thoroughly document every penny you claim. A good idea could be to collect all of your documentation, even if it's not required.
Careful Claiming Business Use of a Vehicle If you are self-employed or own a business, you are allowed to take a deduction for the business use of your vehicle. While there is nothing wrong with this, claiming that you use your vehicle for business 100% of the time is sure to raise some eyebrows.
Try to Avoid Filing an Amended Return If you forget to claim a deduction or credit, or need to make any other corrections after you file your return; you have the option of filing an amended tax return. Try to avoid this situation if possible.
Double Check your Numbers Mathematical or typographical errors are a major red flag. If you use a software program to file, it generally does the mathematics for you, but typos like this are still possible.
Electronically File Your Return Most taxpayers now file their returns electronically. However, there are still a significant number of people who use paper forms-- particularly older taxpayers and those with simple (1040EZ) returns. The data shows that 21% of paper returns contained errors. For electronic returns, the error rate is just 0.5%.
Be Honest This should be obvious, but the best way to avoid an audit is to be 100% honest when filling out your tax return. If you exaggerate your deductions, misstate numbers, or worse, simply guess how much of a deduction you're entitled to, it's likely to come back to bite you.
To Learn More Visit www.reliancetaxgroup.com Or Call Now (877) 597-0153 Source: Frankel, Matthew. 7 Tax Tips to Avoid an IRS Audit. The Motley Fool. The Motley Fool, 14 January 2016. Web. 29 January 2016. <http://www.fool.com/investing/general/2016/01/14/7-tax-tips-to-avoid-an-irs-audit.aspx>

More Related Content

Tax Tips to Avoid an IRS Audit

  • 1. Tax Tips to Avoid an IRS Audit An audit is unlikely to happen, but here's how to further decrease your odds of catching the IRS's attention. Source: Frankel, Matthew. 7 Tax Tips to Avoid an IRS Audit. The Motley Fool. The Motley Fool, 14 January 2016. Web. 29 January 2016. <http://www.fool.com/investing/general/2016/01/14/7-tax-tips-to-avoid-an-irs-audit.aspx>
  • 2. Report All of Your Earnings Falling to report income from a W-2 or 1099 is an easy way to get audited. The IRS receives copies of all W-2s and 1099s that are given to you, and if the numbers don't match up, you're asking for trouble.
  • 3. Over-Document Your Tax Breaks If you have any tax deductions or credits that could be considered unusual, be sure to thoroughly document every penny you claim. A good idea could be to collect all of your documentation, even if it's not required.
  • 4. Careful Claiming Business Use of a Vehicle If you are self-employed or own a business, you are allowed to take a deduction for the business use of your vehicle. While there is nothing wrong with this, claiming that you use your vehicle for business 100% of the time is sure to raise some eyebrows.
  • 5. Try to Avoid Filing an Amended Return If you forget to claim a deduction or credit, or need to make any other corrections after you file your return; you have the option of filing an amended tax return. Try to avoid this situation if possible.
  • 6. Double Check your Numbers Mathematical or typographical errors are a major red flag. If you use a software program to file, it generally does the mathematics for you, but typos like this are still possible.
  • 7. Electronically File Your Return Most taxpayers now file their returns electronically. However, there are still a significant number of people who use paper forms-- particularly older taxpayers and those with simple (1040EZ) returns. The data shows that 21% of paper returns contained errors. For electronic returns, the error rate is just 0.5%.
  • 8. Be Honest This should be obvious, but the best way to avoid an audit is to be 100% honest when filling out your tax return. If you exaggerate your deductions, misstate numbers, or worse, simply guess how much of a deduction you're entitled to, it's likely to come back to bite you.
  • 9. To Learn More Visit www.reliancetaxgroup.com Or Call Now (877) 597-0153 Source: Frankel, Matthew. 7 Tax Tips to Avoid an IRS Audit. The Motley Fool. The Motley Fool, 14 January 2016. Web. 29 January 2016. <http://www.fool.com/investing/general/2016/01/14/7-tax-tips-to-avoid-an-irs-audit.aspx>