Mimimize my Chances of Getting Audited
How can I minimize my Chances of Getting Audited?
A business or person is audited when the Internal Revenue Service (IRS) decides to look more intimately how they have filed their returns. The IRS has begun an aggressive campaign to find and address tax evaders and those who file dishonest tax returns. There are a few things that an individual or business can do to lessen their chances of being audited by the IRS, most of which are fairly straightforward. The IRS has a few things they consider high-risk factors, and eliminating or reducing these will lower your chances of being subjected to further scrutiny.
Eliminate or dilute expenses related entertainment, food, or your car. The IRS considers these three areas some of the largest potential inroads to incorrect reporting. Many people and businesses claim these expenses for business purposes, when in the eyes of the IRS they would be better classified as personal. If you do claim entertainment, dining, or automobile expenses as business write-offs, be sure you have documentation to back it up – and if you are concerned about an audit, be aware that claiming even appropriate write-offs in these areas may trigger an audit.
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