How to Avoid An IRS Audit on Your Tax Return

Each year millions of taxpayers are audited. Many for making innocent mistakes on their IRS return. You can prevent being audited by following the steps below.

Things You'll Need

• W2 forms
• Mortgage Information
• Childcare Information

Instructions

1. First and for most, a taxpayer must choose a tax preparer that is honest and has a good reputation. You can call the Better Business Bureau and get a report before you go to any tax firm. In the next few years; the IRS is going to start requiring tax preparers to take a test before being able to prepare tax returns.

2. Double check your math before you tax return gets sent off; often math mistakes are the biggest draw for an audit.

3. You need to be especially careful when reporting your income. If you own a business and get paid cash for a lot of your transaction; you may be on the IRS list for people to audit because so many people who get paid cash fail to report it.

4. If you own your business and sometimes cheat the IRS; don't brag about it. Those that blow the whistle on you get a substantial amount of what the IRS claims from you. It only benefits those that you brag to; to turn you in.

5. Keep records of everything you claim or deduct for at least three years. Just in case you do get audited.

Tips & Warnings

• Contact a Tax Advisor for any professional assistance or visit the IRS website below.

Resources

• IRS Website