Most people dread the thought of being audited by the IRS. Even in cases where there are no problems and there is nothing to worry about, people can find themselves panicking at the thought of being at the centre of an IRS audit. While there is no guarantee that you can avoid an IRS audit, you can find ways of reducing the chances of being audited which is by avoiding the various red flags that could make you stand out to the IRS.
Ways to Avoid IRS Audits
Some of the ways in which you can help to avoid an IRS audit include:
- Double check your return: Making silly and avoidable mistakes when filing your tax return could flag you up with the IRS, which in turn could result in an increased chance of being audited. You should therefore make sure you go through and double check your data and figures before you submit your return.
- Be honest on your return: You should make sure you do not attempt to fudge the figures or outright lie on your tax return, as this is something that is more likely to get you noticed, particularly if you are a high income earner. You should make sure you are totally honest and then if you are audited you will have nothing to worry about.
- Be realistic with deductions: It may be tempting to add everything you can think of as a deduction on your tax return but this could quickly lead to you being audited, as it will act as a red flag to the IRS. Make sure you are realistic as well as honest when it comes to deductions.
- File online: According to the IRS people are less likely to make mistakes with their return if they file online, which means that you are less likely to be targeted by the IRS for auditing if you file your return online.
These are some of the key ways in which you can help to cut the chances of being audited by the IRS.