Chances are that you’ve lived your life with a vague fear of one day being audited by the IRS. There’s nothing wrong with being audited as long as everything is on the up and up, though; an audit is just the IRS double checking the information you report on your tax returns.
Some people get audited simply due to chance, but others might trigger a notice from the IRS by falling into some common tax mistakes or, worse, by intentionally fabricating figures on their tax return. So what makes the IRS choose you for an audit?
Even when they’re completely unintentional, a blatant mistake on your tax math will give the IRS a good reason to double check all of the rest of your figures and, unfortunately, you’ll likely be fined whether the error was intentional or not.
The easiest way to avoid this common pitfall is to file your taxes with Paramount Tax Relief. Whether you’re nearby in Sacramento or across the country, we can ensure that your taxes are filed completely and accurately.
Whether it’s unsubstantiated donations, home office deductions, or work expenses, you need to be able to substantiate your claims with receipts. While claiming a deduction might save you a bit on your return, it can come back to haunt you during an audit if you don’t have the relevant receipts or documents. Our experts can walk you through eligible deductions that you might miss.
If you’re making extra money on the side, whether it’s paid in cash or by check, you need to factor it into your taxes when it exceeds a certain amount. If the IRS receives notice of payment from an employer and that payment isn’t mentioned on your return, you can expect an audit to follow.
Unless your W-2 is coincidentally packed with round numbers, your tax return shouldn’t be, either. These figures should be reported exactly; round up or down only where tax forms specifically tell you to. As for your deductions, round to the nearest dollar. Rounding to the nearest 100 is likely to qualify as fraud and could trigger an audit.
As long as your taxes are prepared accurately, you’re likely to avoid an audit and have nothing to worry about if you are audited. To ensure everything is in order, trust the professionals at Paramount Tax Relief when filing your taxes. To learn more, contact us online or give our team a call at (916) 533-9940 today.