Posted on April 2, 2010 - by admin

No one wants a Tax Audit

Being audited is a scary thought but there are things you can do to minimize your chances of having one. An audit is when an IRS agent contacts you to verify information on your filed tax return. Sometimes it is a matter of your math being wrong, it you were the one who prepared your return. So making sure all your t’s are crossed and there is no missing details, you will better you chances of not getting this call.

If you claim a charity donation on your return, you better have the receipt to back it up. If you donated your car or claimed to have given more than ten percent of your income, then you should have proof because these things put up red flags to the IRS.

Travel and entertainment expenses will also raise a flag so keep records of things like this and the reason for that trip you took. If entertainment is part of your life, then keep track of who and where and how much you paid. Having this documentation won’t stop an audit from coming your way, but you can prove your case if you must. The IRS will randomly choose people to audit so don’t panic if you get a call. You will only be asked to prove your claims made on your return.