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Ten Easy Ways to Avoid Being Audited by the IRS
A small percentage of taxpayers are audited. Some are chosen at random. There is nothing you can do about this except to be prepared. Save receipts and paperwork and a copy of your 1040 and any forms and schedules that were attached to it.
Other taxpayers are chosen because the IRS believes they have lied on their returns. Actually, the computers at the IRS believe the taxpayer has lied. These tips will help taxpayers from arousing the suspicions of the computers.
1. Be honest.
When you are preparing your return, understand that all of the tax-relevant
information sent to you has already been sent to the IRS. They know all the
numbers on your W-2's, 1099's mortgage interest statements, bank interest
statements. If you have received information from an organization, the
computer knows what it is. Do not forget, invent, or pad any of these
numbers.
2. Be careful.
Make sure all names are spelled properly and all social security numbers are
correct. If your Dependant's name is spelled differently this year than
last year, the IRS will wonder if this is your depend6ant or, in fact, if
the person exists. Double check this information before submitting your
return.
3. Be consistent.
When filing taxes, you are allowed to round the amounts to the nearest
dollar. Make sure all numbers are either exact or rounded.numbers. You
cannot use two different sets of figures.
4. Use the easiest form available for your situation.
People filing a 1040EZ will not be audited. However, very few adults are
eligible to use this form. Unnecessary schedule and forms can set off the
alerts at the IRS. Keep it simple as simple as possible.
5. Use the standard deduction.
Very few people who do not have mortgages on their primary homes or
extraordinary medical expenses have enough expenses to itemize their
deductions. If the amount you are claiming is not much more than the standard
deduction, do not itemize. This may not maximize your return but it will
help you avoid an audit.
6. Include all forms.
If you do itemize your deductions, be sure to include all of the necessary
forms. If you are claiming employee business expenses, writing a
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How to avoid being audited by the IRS
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