How to Prevent Your Taxes Being Audited Articles | Taxes

By: Guy Starbuck

The tax audit is the one thing that the majority of people fear more than filing their taxes. Both individuals as well as businesses agonize that one day the IRS will audit them. Films have also contributed to making tax audit seem like an awful thing. While the fact is that the majority of audits are done because of little mistakes and the IRS provides you sufficient time to rectify and resolve the issue, it's still not something that the majority of people would find enjoyable.

But how would you react if you were aware that there were certain things you could carry out to prevent your taxes from being audited? Don’t you wish to do whatever is possible to help stop this from occurring to you? While quite a few audits are totally random, the majority take place for a particular reason and once you’re aware of what are these reasons, you can become skilled at avoiding them or at the bare minimum greatly decrease the odds of you being subjected to an audit.

This is what you must recognize:

• File at the correct time - It is believed that in case you file your returns towards the latter half of the tax season, your chances of being audited is much lower. But, if you are aware of receiving a refund, simply file well ahead so that you can receive your money sooner.
• Countercheck your calculations - One of the major reasons for doing a tax audit lies in the errors made in math computations. The IRS computer would detect these errors and your file will be flagged leading to an audit. Always ensure the numbers make sense.
• Always be ready to substantiate – In case you have incurred expenses for travel, gas, entertainment, and so on, you must be capable of substantiating these with the appropriate receipts since these are amongst the most frequently audited cases. Be methodical and prepared and maintain all of the receipts so that you have cogent evidence of your deductions.
• Keep a wary eye for "gray areas" when you fill up deductions. If you're uncertain whether something will be accepted or not, it’s best to leave it out.
• Plan in advance if you believe you have a debatable deduction. Mail in your receipt. In case the IRS flags your claim and an audit is called and a representative of the IRS checks the proof you send in, they may then call off the audit.

In case the unavoidable audit does take place, don't have a panic attack. Take the assistance of an expert if you believe you have to but ensure to contact the IRS as well as their representatives in order that everything goes well. It's not as if your world has collapsed if you are audited and it does not inevitably indicate you will be in a soup or owe more money.