How Prepaying Affects Likelihood of IRS Audit

Video Transcript

"How to avoid an IRS audit. If you're using a tax preparer that has not had a very good reputation, you could be placing yourself at a risk for an IRS audit. If your tax preparer has been identified as a person who takes frivolous deductions on returns, that can have a negative impact on your possibilities of being selected for an IRS audit. Remember that the tax return that's submitted on your behalf is ultimately your return. Even though it is required to be signed by a tax preparer that you have engaged, you need to make sure that you understand all of the information that's on a return. If it's a couple years later and you're being selected for audit, you're the person who has to justify and submit documentation and receipts for the items that are reported on the return. While the preparers can have preparing penalties accessed against them, you will have to pay the interest penalties and additional taxes that are due. You never want to go to a practitioner who's going to guarantee you a refund, you want to make sure that whatever is reported on your return is as it is. If you're due a refund you're due a refund. Don't shop around for a tax preparer who can guarantee you additional cash in the mail. You want to make sure that what's reported on your return is correct and accurate. When seeking to, when seeking a tax preparer, if you want to avoid an IRS audit, make sure it's not a person who's going to guarantee you a refund. Make sure it's someone who's going to prepare a complete and accurate return and will go over that return with you so that you understand what's included."