By Greenberg law group, p.a.
Keep swiping to learn 5 of our tips to reduce your risk of an IRS audit.
An IRS audit is a procedure where the IRS reviews the financial accounts and information of individuals or organizations to ensure compliance with tax laws.
Anyone can be audited, with some being selected randomly as part of the IRS’s efforts to maintain tax compliance, while others are chosen due to specific factors that trigger an audit.
Keeping your records in check is extremely helpful for smooth tax compliance.
Detailed records of your income, expenses, deductions, and receipts help you report income correctly, claim valid deductions, and substantiate expenses if audited.
Reduce your risk of an IRS audit by reporting your income as accurately as possible. This includes wages, self-employment income, investment income, and other sources. Refer to important forms like W-2s, 1099s, and K-1s for accuracy and completeness.
When claiming deductions and credits, ensure you only claim what you are eligible for and avoid over-claiming or exaggerating expenses. Keep thorough and organized documentation to support deductions such as charitable contributions, business expenses, and medical expenses.
Late and inaccurate tax filings are common triggers for IRS audits. Filing your taxes accurately and on time significantly help reduce your risk of an IRS audit. Timely filing not only helps you avoid penalties but also reduces scrutiny.
Tax matters require expertise for the best results. Filing taxes and addressing tax issues can be complex and time-consuming, demanding thorough effort and focus. Consult a qualified tax professional to ensure no important information is overlooked and that all responses are detailed and tailored to your case.