Every CPA in Kissimmee knows that this year, millions of tax returns will be received by the IRS from individuals and businesses, which will in turn prompt a series of audits conducted by the government to verify whether or not the tax refund claimed is legitimate or not. This is why individuals should consider hiring the most qualified CPA in Kissimmee to guide during this turbulent time.
About 38% of all returns individually filed on average were audited during the previous three years. The selections were made based on an earned income tax credit or EITC claim, which is a tax credit for those people who work but have low incomes.
Individuals filing their tax returns are always apprehensive with the ever looming possibility of an audit. The IRS chooses candidates to go through the audit process due to a number of reasons, and no matter the exact range of your income the IRS uses, individuals and business owners can ensure that they remain under the radar by a number of ways.
A good CPA in Kissimmee knows that the following are red flags that will prompt the IRS to conduct an audit, if even one is found on the tax returns form:
Stating income figures out of proportion
The IRS makes a lot of effort to know the average wage for the job you have. Therefore, if the figures you provide are not the same that’s in their database or not according to what other people are earning in the same industry, this will most probably raise a red flag.
How to avoid this: Be truthful, and include the figures you really make to prevent from getting on IRS’s radar ever year. Hire a qualified CPA in Kissimmee to do this for you.
Incorrect home office deductions
The best CPA in Kissimmee know that the IRS has strict guidelines and regulations to determine what qualifies as a home office. People often cheat with this tax returns claim, by adding their entire home for the deduction. This poses as another red flag for the IRS.
How to avoid this: The guidelines provided by the IRS clearly states that your home office must only be used for business purposes to qualify for a home office deduction. Make sure to hire a CPA in Kissimmee who has the current technical information regarding this.
Losses incurred by self employed tax payers
During the first two years, it is common to report losses by a self employed business proprietor. However, it’s reason for concern and suspicion when owners complain of losses despite being in the business for a longer period.
How to avoid this: Provide and go through all the necessary business and financial documentation with your CPA in Kissimmee, which proves whether you made a profit or a loss before filing for tax returns.
Not reporting all taxable income
Individuals can make silly mistakes by misplacing a decimal point or adding an extra number that could mess up all the income figures. It’s for the best to hire a CPA in Kissimmee to help you with this task.
How to avoid this: Have your CPA in Kissimmee go through the entire form to check if all the figures are there. Re-check the information provided. If an error is found, your CPA in Kissimmee will discuss it with you and correct it immediately.
If you need more information about our Kissimmee, FL accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt. (Freedomtax’s accounting and tax professionals are NOT CPA’s. CPA services provided by third party provider.)