How to Avoid a Tax Audit?

Answer 1

While there is no way to eliminate your chances of being audited, try following some of the tips below:

• Report all of your income on the proper lines of your tax return. If the income from your W-2's isn't reported where it should be, the IRS could get confused, and ask you to clarify.
• If a W-2 or 1099 form you received was incorrect, ask the issuer to send you a corrected copy and send it along with your return.
• Make sure you report all of the income that is associated with your social security number. (W-2's, 1099's and interest payments) The IRS uses your social security number to track income attributed to you, and matches it against the income you report.
• Keep detailed records of any deductions you make.
• Don't report a deduction twice. If you are filing using multiple schedules, it may be easy to mistakenly deduct the same expense on two different schedules. Review all of your forms that you did not make this common error.
• Keep copies of all substantiating material, such as W-2's, 1099's, canceled checks and relevant receipts filed with completed copies of your return. This will make them easier to locate if you are audited.

If you do get audited, don't panic. Remember that some people are selected to be audited at random, while other selections are based on certain statistical comparisons. However, receiving an audit notice doesn't automatically mean that you are in trouble with the IRS, or that you owe them more money. It simply means they have questions on your return. Your chances of successfully surviving an audit are greater if you are properly prepared, and have supporting documents for the information on your return.

Answer 2

Hi, everyone has to pay their taxes. If you avoid it, it makes this so unfair on others who are hardworking and paying their taxes. If you were in their position you would not like to think that you were having to pay more to cover the losses caused by the benefit cheats and the people that avoid paying tax. If millions tried to do this, look at to what cost. Everything would go up in price, poverty would be at the highest If you are worried about an audit, have a chat with an Accountant, but please, dont cheat. If you believe in God, look at the story of Mary and Joseph. There would have been no Jesus if they had not have had go to do the censor so that taxes could be calculated. This is something we should remember especially now with Christmas coming in two weeks.

Answer 3

never file early....the closer the IRS gets to 4-15(tax day) the less slots are open for audits of that "type" whether it be a certain income bracket, a certain business activity there are only so many audits conducted each year so the later you file the lower your chances are of filling one of those slots for audit. Record keeping is essential. Good paper trails can save you time and money. I lived through a business audit this year and they looked at 3 years of returns...in the end they owe me $14!!! Although the cost incurred in gathering & providing this information was well over $1000. the satisfaction of knowing I did it correctly was priceless!

Answer 4

The IRS says that it's random who gets chosen for an audit.

My accountant says they flag accounts for certain activities, the main one being a large change in income, whether up or down.

Answer 5

Tax audits are random, unless there is an obvious sign that you have been cheating.

Answer 6

It is not compulsory if the turnover is less than Rs.40 lacs.

Answer 7

Share your or concern PAN here. You will know it. Be honest or have knack what to question and where!

Answer 8

pay your taxes!

Answer 9

Don't cheat

Answer 10

Die