For most people, it is easy to get through the tax season while being unscathed, which means all taxes gave been filed and paid accordingly. Some, however, are unfortunate enough to be subjected into a tax audit by the IRS. In the past year, only 1% of all the individual tax returns have been audited by the agency, which is primarily due to the lack of personnel to handle the job. Even with a very minimal chance of being audited, it still pays to be as careful as possible to avoid being troubled in the future. The following are some of the tips you can consider to be spared from being audited by the IRS.
Honestly is the Best Policy
Some people would try hard to conceal their earnings to avoid being required to pay higher taxes. However, this will only put you into a higher risk of being picked for IRS tax audit. With this, experts recommend to be 100% truthful with all of your tax-related declarations, which will surely spare you from problems in the future. Outright lying will only put you in the hot seat, and the IRS will surely not ignore your case once they have spotted significant discrepancies.
Go Easy on the Deductions
In most cases, the representatives from IRS will take a second look at your tax returns if they see unrealistic deductions. For instance, some people donating their things to charity often time expresses a higher value of these donations to enjoy higher deductions. They will most likely just put you into trouble. It is important to make sure all of the deductions filed are legitimate to avoid the hassles associated with IRS audits.
Prepare all Documents
It will also help if all of the documentary requirements are prepared and properly managed. When the time comes you receive a letter for an IRS audit, these documents will help to prove how you have taken care of all your taxes and you should never be the subject of an audit. It is also important to have all documents double-checked before filing an audit as mathematical errors can naturally occur and can put you in a bad light.
Work with a Professional Tax Service Company
At the end of the day, the most important thing is to work with a contractor specializing in the provision of tax services. These companies have people who are experts in taxation and who will help you to manage your taxes in a manner that is almost effortless. In exchange or paying for their services, they will handle most of the headaches related to filing and paying your taxes, including responding to whatever problem will be apparent. With their knowledge, there is a higher likelihood of being the subject of an IRS audit while making sure you do not forget your duties as a responsible tax-payer.