Tips For Avoiding An IRS Tax Audit

Tax audits can be time-consuming and stressful, so it’s in most of our best interests to avoid them when possible. Although there’s no way to guarantee that you won’t be audited, taking certain simple steps can significantly reduce your odds of review. If, however, you have already received notice of an impending audit, you shouldn’t panic, as these proceedings can be gotten through smoothly and with little upset, especially if you have an experienced Florida tax & IRS attorney on your side.

Report All Income

The chances of your tax return being audited are relatively small. It is still possible, however, for the returns of unsuspecting taxpayers to be flagged during review, often just for a minor mathematical error. To steer clear of these kinds of time-consuming proceedings, you should consider taking a few deliberate steps, one of which is to make sure that you report all of your income. Under the tax code, taxpayers must report their earnings across the board, so if the IRS receives copies of a person’s 1099 and W-2 forms and finds that the numbers don’t add up, a person’s return could end up in the audit pile.

Look Over Your Schedule C Form

Self-employed individuals should also use great care when filling out their Schedule C forms, as businesses that show a high cash volume or significant losses tend to draw scrutiny from the IRS. It’s also a good idea for those who work from home and claim a Home Office deduction to make sure that their workplace satisfies the IRS’ requirements.

Remember the Rule Changes Regarding Alimony

After 2018, those who entered into alimony agreements with a former spouse were barred from deducting those payments come tax season, as had been permitted in previous years. Those who are not up-to-date on recent changes could find themselves in hot water if they fail to modify their tax return calculations accordingly. It’s also important to note, however, that this rule only applies to individuals who enter into alimony agreements after 2018. Alimony paid according to agreements made from before this deadline can still be deducted by the payor.

Check Your Math

Even those of us who use the greatest possible care when filling out our tax returns, could end up making an error. Mathematical mistakes are particularly common and could result in the addition of your name to the IRS’ audit list, making it especially important for taxpayers to keep an eye out for mismatched numbers and ensure that their numbers actually add up.

Strong Representation When Facing an IRS Inquiry

Even those who are confident that their returns are error-free could find themselves the recipient of an IRS request for a review. Fortunately, you don’t have to go through the proceedings alone, so if you are facing an IRS audit, please call dedicated Florida tax lawyer Ronald Cutler, P.A. for advice. We don’t charge for initial consultations, so don’t hesitate to reach out to our legal team by phone at 386-490-9949 or by sending us an online message.

Resource:

irs.gov/businesses/small-businesses-self-employed/irs-audits#audit-selection