How to Not Be Audited by the IRS

  • Always File a Return
  • Use a Reputable Preparer
  • Be Neat and Legible
  • Include All Relevant Information
  • Always Be Honest

Filing taxes can be a pain, but getting an IRS audit is even worse. That’s why it’s so important to take your time when doing your taxes. There are things you can do to lessen your chance of being audited. Keep reading below, and you’ll find some suggestions to help you do just that.

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1. Always File a Return

Some folks think that if they don’t make any income or owe no taxes, they don’t have to file a return. This is simply untrue. It’s important to always file a tax return regardless. In fact, if you fail to file a return for any reason whatsoever, it’s much more likely that the IRS could get in touch with you and decide to do an audit. Filing the paperwork is proof of your status and is necessary to cover your bases.

2. Use a Reputable Preparer

Not all tax preparers are created equal. Be sure to get references of those you may be interested in hiring. Also, do consider using a tax professional if your taxes are beyond the basics or if you are at all unsure. It’s the job of these people to know the ins and outs of filing. They understand tax law also and will be more likely to be sure everything is on the up and up.

3. Be Neat and Legible

One thing that will surely draw unnecessary attention to your return is if it’s difficult to read. Be sure to use care when filling out your paperwork if you want to avoid an IRS audit. Tax papers that are easy to read will sail through smoothly, while illegible ones are likely to get flagged and set aside.

4. Include All Relevant Information

Omitted information, even if not purposeful, is another red flag for the IRS. Take time to go over your return multiple times before submitting it. Make sure you’ve included everything, to the very best of your knowledge because it’s likely that the Internal Revenue Service knows about it. They will wonder why any income sources or other relevant information is missing from your paperwork. Such issues raise suspicion.

5. Always Be Honest

Finally, always be honest. This seems obvious, but it can definitely be tempting to fudge some things when doing your taxes. Never stretch or modify the truth. This is especially important when you’re self-employed. Be prepared to back up your claims with receipts or other types of verification. Be sure any claims follow applicable rules. Ask an expert if you’re unsure.

These are just five tips that will help you to stay in the clear when doing your taxes. If you want to avoid an IRS audit, truth and care are extremely important.

Source: Forbes