Once the taxpayers have filed their tax returns, the IRS conducts random tax audits to ensure that taxpayers have correctly filing their returns. If the IRS finds out any inaccuracies in a tax return, it sends a notice to the concerned taxpayer asking for an explanation. Tax audits can be quite upsetting, and although you can seek help from an IRS tax lawyer to deal with the situation, it is better to follow a few simple tips that can help you avoid a tax audit. Come, let us take a look.
e-File Your Returns
The error rate for a return filed through paper is around 21 percent, which is substantially higher than the electronically filed returns that have an error rate of 0.5 percent. So, if you do not want to your return to be audited because of a mathematical or any other return filing error, file your returns electronically. Even the IRS encourages the taxpayers to do so.
Round Numbers are a Big Red Flag
Do you know the IRS tends to pick those returns more that have numbers rounded off to the nearest hundreds? For example, if you run a business and want to claim a business expense of $320.25, it is advisable to make a claim to the nearest dollar, which in this case would be $320. In case you round it off to the nearest hundred, that is $300, you are increasing the odds of your return being picked for an audit.
Do Not Forget to Sign Your Return
You may be surprised to know this, but it is true that the IRS often pulls up returns for tax audit, simply because the taxpayer forgot to sign their tax return. Not filing the tax return may increases the chances of a return being pulled up for an audit as the IRS might then scrutinizes it further for other errors. So, if you do not want to be a part of this number, make sure you duly sign your tax return.
Ensure Legibility
While it is best to file the returns electronically, but if you are old school and you like to file your return the traditional way, then make sure the return you file is legible. If the return is not easy to read, it will draw the attention of the IRS personal, and they will scrutinize your return more carefully.
Why Hire an IRS Tax Lawyer?
Although the percentage of returns that get audited every year comprise only 1 percent of the total returns that are filed every year, you would certainly not want to be a part of that scrutiny. To avoid an IRS tax audit, seek help of an experienced IRS tax lawyer. If you are looking for an IRS tax lawyer, get in touch with us at The Law Offices of Nick Nemeth, and we will be happy to help.
