There is no sure fire way to avoid a tax audit. However, there are some things you can do to avoid being flagged for a tax audit:

1. Keep your tax return neat and clean. It's best if you can fill out your tax return using a computer program, but if you do fill it out by hand, make sure that you write clearly and neatly. Print out two copies of your tax return form. Do all your calculations and figuring on one, and then when you get it right, copy it carefully onto a fresh form.

2. Don't round the numbers. Rounded numbers signal to the IRS that you might be "guestimating." Precise numbers show that you keep accurate records (make sure you DO keep accurate records!). So, as silly as you feel writing in $898.97, do it.

3. Try to fill out as few Schedules and Forms as possible. The more complex your tax return, the more likely you are to make a mistake. If you must fill out a Schedule C (notorious for audits, since it is self-employment related), make sure that you do so VERY carefully. Even if you don't send documenting evidence along with your return, make sure that you have it in an accessible place. If you can't document it, don't claim it. Make sure that your business expenses are exclusively business expenses. If you have more than three or four schedules and more than five or six forms, you might consider having a professional do your taxes, since they are probably VERY complex.

4. Avoid using the handy mailing label. The handy scanable label that comes in your tax return packet from the IRS speeds you through the process, making it likely that the IRS folks have more time to pore over your return. The same is true if you send your return in as soon as the new year starts.

Learn more about this author, Miranda M..
Click here to send this author comments or questions.

---

Add your voice

Know something about How to avoid being audited by the IRS?
We want to hear your view. Write now!