How to Prevent an IRS Audit

The time for tax season has come once again. With it comes needless stress and determination to not pay the IRS but instead get at least some money back. But a bigger fear exists out there. It’s the threat of going through a terrifying audit by the IRS. Yes, an audit can be scary. They can be time consuming and a consumer could end up paying in the end. But through smart tax preparation and basic knowledge of taxes a person can easily avoid the possibility of an audit and, if not, get through one painlessly.

The most important thing anyone will tell you is to keep your receipts. None of the steps you might take will be more vital than simply keeping your receipts all year long. When it comes to taxes your receipts are like gold and enable you to report correct figures the first time. The IRS generally isn’t in the market to audit correctly filed taxes and if they choose you as their next victim, your correctly filed return will be backed with evidence that the IRS cannot argue. Another tip for those especially scared of a tax audit is to use a tax preparing aide, either computer software or a public accountant, because again, the chances of your taxes being done correctly are increased with their help.

Most tax professionals, both electronic ones like TurboTax or in person one’s like your CPA, will assist you in the instance that you’re chosen to have your finances combed through. Accountants are even specifically trained to ask the right questions and ensure that you qualify for the deductions and credits you might apply for, and find documentation to provide the IRS, making sure an audit doesn’t happen in the first place. They won’t make up expenses or take deductions you do not qualify for, and laws against tax preparer fraud protects you from their intentional errors.

Those most at risk for a tax audit are schedule C fliers. Generally the IRS chooses to audit these for the simple reason that they require the least amount of paperwork. It is almost always recommended to have an accountant assist in filing in this method, and as a consumer you simply must, again, keep track of those receipts. It ensures accuracy and makes an audit generally speedy and stress free.

The best advice any accountant can give though is to document each and every deduction you might take. The IRS does audit various filers for several reasons, including picking filers at random. However, if you keep a receipt or some form of documentation for everything, starting from the very start of the year, even if the IRS does decide to audit your taxes the outcome can be as stress free as possible. Certainly there is no perfect solution to avoid an IRS audit, but if you want the best tax resolution, whether it be avoiding an audit or getting through one without hassle, records mean everything.

Guardian Tax Resolutions will help you obtain relief from the IRS today. Our professionals are experienced and qualified with significant expertise in resolving IRS tax problems.