When dealing with the Internal Revenue Service (IRS), it’s never a good idea to willfully avoid paying your fair share of taxes by being dishonest. At the same time, it is also your right to pay the least amount you legally owe when it comes to filing your federal tax return. This gives rise to a common dilemma that many taxpayers face at tax preparation time: How to pay the lowest amount of tax legally without being flagged by the IRS for an audit. This is no small matter because tax laws are numerous and often confusing. Not to create unnecessary fear, but please remember that there are a variety of consequences for tax evasion, including bank levies, tax liens, and even court-ordered time in jail. It may be best to get help when doing taxes Woodbridge VA.
Top Reasons Why Your Returem May Be Audited
Returns are likely to be audited for a number of reasons. Here are a few of the more common ones:
- These include such things as out-of-the-ordinary deductions and numerous math errors on the return.
- Additionally, your chances of being audited increase if you do not file the proper schedules.
- Moreover, if the income stated on the return is lower than that on your W-2 forms and other documents, you increase the chance of being audited.
- Business returns, in particular, can be quite complex. Filing a business return, therefore, may raise the level of audit possibility.
Be Meticulous in Preparing Your Return
Keep in mind that in general, the IRS can audit returns as old as six years. Therefore, keep copies of all federal tax returns and supporting documentation for at least as long as six years. Your best antidote to being audited by the IRS is to be thorough, accurate, and honest when preparing and filing your annual tax forms. Do yourself a great favor by keeping meticulous records throughout the year.