Nobody likes to fight with the IRS and usually those who do don\u2019t win. \u00a0For this reason, nobody likes facing an audit as it usually means having to argue with the IRS over how much taxes you owe.<\/a> \u00a0So if you want to learn how to avoid a tax audit, read on. \u00a0Click here to read or watch more IRS Help resources.<\/a>
\nTip #1 \u2013 Do not simply claim deductions
\nThe first thing to bear in mind is not to make claims for deductions that you cannot defend. \u00a0If you are not completely sure you are entitled to it, do not claim it. \u00a0If you make reasonable claims, you will probably not have to defend them. \u00a0Then even if you are summoned for an audit, you have nothing to worry about. \u00a0So if you cannot fully substantiate that vacation you took as a business trip, don\u2019t claim for it or if your personal loss-making business is really only a hobby, don\u2019t call it a business.
\nTip #2 \u2013 Engage a professional or use software
\nThe services of a tax expert like an enrolled agent, tax attorney or CPA is useful in preparing your tax submission for you or at least advising you on it<\/a>. \u00a0On the other hand, if you are the DIY type, you should use tax preparation software like Turbotax (by Intuit) or Taxcut (by H&R Block) to avoid making mistakes and make the process faster and easier.
\nTip #3 \u2013 Check your calculations
\nAlways check and recheck you calculations to make sure you have not made any errors. \u00a0This is another reason to use tax software. \u00a0It will cut down the time you take to prepare your taxes and avoid the possibility of making calculation errors. \u00a0However, if you do make a mistake in calculations, you will probably receive a math correction notice from the IRS. \u00a0This is not an audit. \u00a0But you should avoid receiving even this so that you do not have any contact with the IRS bureaucracy as far as possible.
\nThis brings me to my next tip.
\nTip #4 \u2013 File manually
\nWhy should you file manually while most taxpayers are filing electronically? \u00a0Because filing electronically gives the IRS easy electronic access to the information they would otherwise have to manually go through if you submit the old fashioned way. \u00a0You are to be honest and accurate in your submission but no one says you have to make it easy for them. \u00a0This makes it is less likely for you to be audited.
\nBut there are pros and cons to this tip. \u00a0Obviously, e-filing is quicker, more convenient and cheaper than manual filing. \u00a0So I suggest that if your taxes are straightforward, like if your tax returns are short form (Form 1040EZ or 1040A) or if you are expecting a refund and need it quickly, then you don\u2019t really need this tip. \u00a0But if your tax returns are complicated, this tip might be useful for you.
\nStay tuned for my next article where I will share 6 more tips to avoid an audit.<\/p>\n
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