Being a leader in tax problems help services we know that on an average, the IRS audits slightly more than 1% of all the tax returns that are filed every year. The department lacks the time and resources to pay heed to all the individual returns filed every year, limiting it to auditing only some tax returns. Therefore, a lot of individuals are left wondering about the factors that make the IRS select particular tax returns for audit, while leaving out all the others! Taking IRS tax audit help Orlando FL can be quite helpful in understanding how these audits work.
There are certain factors that can increase the chances of your tax return being the one selected for an audit. Here we mention some of these red flags which can definitely increase your chances of getting unnecessary attention from the IRS. However, to learn about several other factors, you should consider getting IRS tax audit help Orlando FL from a professional:
Tax Problems Help Tip 1 – Filing for Home Office Deductions
For entrepreneurs operating from home, filing home office deductions can be a major way of attracting tax audits. The IRS allows you to deduct $5 per square foot of your house space that is being used as a home office. Based on the percentage of this area to the entire area of your house, you can make deductions for all expenses, such as rent, insurance, bills and utilities. The tricky part however, is to prove that the specified area is used strictly and specifically for business purposes and not for any other reason.
With many entrepreneurs taking advantage of these deductions, they have become a highlight for audits with the IRS. Therefore, you should get professional IRS tax audit help Orlando FL to ensure that you have made all the legitimate and documented deductions responsibly. Just because of the fear of an audit, you should not shy away from your legal rights of claiming these deductions.
Tax Problems Help Tip 2 – Making Business Expense Deductions
For self-employed individuals, this is one area that can turn out to be tricky when they are dealing with the IRS. Self-employed people often make the mistake of over-stating their business expenses for meals, entertainment and travel, without thinking too much about the consequences. However, self-employed individuals should be aware that making large deductions for meals, travel and entertainment can be one way of inviting the IRS to audit your tax returns.
Therefore, it is completely necessary to include only the correct expenses under this title and having complete and valid documentation to prove every deduction. If you lack the documentation for a specific deduction you have filed, you can get into trouble during a tax audit. You should take the help of IRS tax audit help Orlando FL to ensure you are doing things right.
Tax Problems Help Tip 3 – Reporting Deductions Higher than Average
Another major reason why certain tax returns are selected for an audit is the large amount of deductions filed. Usually, the IRS maintains a record of average deduction for people sharing almost similar profiles. If your profile matches a certain criteria, but your deductions are quite higher than the average filed by others with similar profiles, your tax returns would probably have higher chances of being audited.
However, if you have all the proper documentation proving these deductions valid, you have nothing to worry about. It is also better to get IRS tax audit help Orlando FL so that you have a better idea of where you stand.
If you need more information about our accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting firm has its main offices in Kissimmee, FL. We serve the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, and Hunters Creek, 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 numbers, incorporations, and non profit 501c3 tax exempt status applications.