The IRS Tax audit is one that can instill fear even in the most diligent of tax payers. The following are some tips that will keep auditors from knocking on your door.
Be Sure To Report All Income
This includes tips. The IRS already knows how much you make. If you fail to put down all your income when you file for tax then the IRS’s computer cannot match the numbers and they may come after you if they think that you are ‘hiding’ something.
On the other hand when you are working on your tax preparation in Poinciana, and you happen to receive an amount on the annual form that is incorrect, you should contact the issuer to request a correct form. Make sure the issuer sends a copy to the IRS as well.
Self Employment Deductions
Everyone can claim some kind of deduction. Now when it comes to the self employed individuals and all the types of deductions that are viable to them. If there are too many of these and they seem to be taking an advantage of this, then the auditors are sure to come knocking on their door. The trick is to keep receipts and a log of how an expense contributes to the business. For example, you travelled to a certain place for a business meeting.
Never dodge documenting alimony payments. Alimony payments can easily be a trigger because the rules here are strict about what can and cannot be claimed as a deductible.
Nothing beats experience and expertise. Professionally prepared tax returns are less likely to be audited. Why is that? Because they are skilled at not missing out the small details that you easily might. More than that, professional tax preparers can get you the right deductions and make sure that a complex financial situation is filed accurately. This way, the IRS will be kept at bay.
Do Not Aspire
If you are afraid of audits, you might not want to get that pay raise. The general theory is that the more money you make, the more likely it is that you will be audited at some point.
The IRS are good with numbers, and their server keeps track of stats and averages. In the same way, if you happen to make an out-of-ordinary charitable donation, the IRS is bound to send its auditors to snoop around. Either you make an average donation or you maintain excellent records of wherever you spend your money.
At the end of the day, double-check your math before you file for the tax return. A single mistake can trigger scrutiny from the IRS.
If you need more information about our Kissimmee 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.