Avoid A Tax Audit – Window Dress The Return Before Sending It To The IRS Make sure you use a tax program to help avoid a tax audit. Currently Tax Act lets you download a full version of their software to do your personal income tax, Form 1040, for free. Make sure your math is correct and anything out of the ordinary is explained. Our firm has a policy of reviewing returns for this issue upon their completion. Don’t Follow The Advice Of News Reporters I personally read many IRS related news articles. It’s amazing how in their attempt to create “news bites” and small articles, misinformation abounds. I suggest you read the sites of CPA’s and Attorneys and then research what is being said. This way you know if the advice is sound. Extension Of Time To File Your Return It’s very unlikely you will be audited if you file an extension and then file your personal income tax return in October, right before the due date. I have not been able to find IRS website statistics on the number of returns audited that were extended and filed during October. I wonder why! Of course you must window dress the return so it is processable and not flagged. Avoid The Office In Home Deduction Many taxpayers do not realize that when they depreciate their home, they have to reclaim all of it as income when they sell it. Thus, only benefiting mostly from the deductions. We advice our clients not to take the office in home deduction, if the expenses only saves them a few hundred dollars. It’s often not worth risking it and help to avoid a tax audit. Report All Taxable Income I’m not advocating that you don’t report income not taxable. I’m just saying that over ...Continue Reading
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