There is nothing worse than getting all your tax documents together, filing your tax return, and months later finding out you are now being audited by the IRS. Realistically, the risk of you being audited is quite low as less than 1% of tax returns are audited each year. But if you’re like most people, you want to make the chances of you being audited as low as possible. Here are a few things you can do to help lower your risk of being audited.
First, make sure your taxes are filed correctly. Take that extra day or two to look it over and make sure the numbers match. If you have it prepared by a tax accountant, look it over with them and make sure you understand the entire return. It doesn’t matter who prepares your tax return, YOU will be responsible for whatever the tax return says. If you don’t think you’ll have it all done by the tax deadline, file for an extension and use the extra time to double check everything.
Second, ditch the paper return and file your tax return online. According to the IRS, 21% of paper filers have some type of error on their returns. These errors could be a missing page, math errors, or empty boxes not filled in with information. For those who file online, the number of returns with errors drops to below 1%.
Third, make sure your math is correct. Don’t make up information or round up your numbers. Put in the numbers exactly as they should be. It might seem small and some taxpayers think a minor addition error will be overlooked, but that mistake can make the IRS wonder what other mistakes there might be. If they see one mistake, they’re more likely to look through your entire return.
Lastly, if you plan on taking a few deductions, make sure to have substantiation. You should be tracking your deductions throughout the year and keeping documentation for each deduction. If the IRS decides to ask you about a certain deduction or the amount, you’ll want to have the proof to support it.
If you find out you’re being audited, don’t hesitate to ask for help! Call us at 405-801-2146 or click below to schedule your free consultation today!!