Taxation & Estate Planning

Reducing Chances of an IRS Audit by Tax Attorney serving 33608 (part 1)

By Darrin Mish

Getting an IRS audit to many people is a scary thing. Some people even resort to paying more taxes just to avoid getting audited. But doing that would bring a set of different problems such as delays in getting your refund, something that is a real possibility depending on which state you are living in.

Therefore, it is helpful to know the factors that would likely lead to an audit. While there is no water-tight way to guarantee you will not be audited, there are some red flags you should avoid to lessen the possibility.

1. Prepare your tax return using a computer program

There are many software programs like Intuit?s TurboTax and MacInTax that enable you to prepare a computer-generated tax return. This makes it look more professional to the IRS and will likely lessen the chances your case will be picked up for an audit. You can even utilize TurboTax?s web based function at www.turbotax.com.

Even if you cannot prepare a computer-generated tax return, you should write out your tax return in print neatly. A messy return with lots of cancellations and multi-corrections raises the suspicions of the IRS who might think you have something to hide.

2. Avoid mathematical errors

It seems obvious but it needs to be stated. A mathematical error of any kind will invite an audit for sure. All it takes is to check through your tax returns to ensure it is error-free, accurate and looks reasonable.

3. Match your state tax returns with your federal tax returns

Everyone is required to file two separate sets of tax returns, one for the state and another for the federal government. If your figures in these returns do not tally, it will likely prompt an audit. Again, all you need to do is be careful in what you put down in your returns.

4. Have your supporting documents ready especially for large deductions

If you are making unusually large claims such as in the event of a natural disaster or fire, make sure you have complete documents to substantiate your claims such as expenses receipts, cancelled checks, insurance claims, repair payment receipts, pictures etc. If your return is picked up by the computer because of your numbers, these supporting documents will come to your rescue when a human evaluator looks over your filing.

5. Avoid rounding off numbers for deductions

Rounding off numbers like making $992 become $1,000 makes it seem like you are not keeping proper records and this would invite an audit.

Here are 5 potential red flags you should be aware of to avoid a tax audit. In my next article, I will show you another 5 more.

Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.

Reducing Chances of an IRS Audit by Tax Attorney serving 33608 (part 1) is a post from: IRS Tax Problem Solver Blog - IRS Help

Full post as published by IRS Problem Solver Blog on April 30, 2010 (boomark / email).