No one in Dallas wants to hear that their tax return is being audited by the IRS. However, in 2011, IRS audits went up by nearly 35 percent from 2010. Fortunately, there are a few steps you can take to avoid an audit.
Of course, the most obvious is to completely and accurately fill out your tax return. Sometimes, however, it can be easy to make mistakes. And with so many people filling out their own tax returns in an effort to save money, room for error is larger than ever. In that vein, start by using a calculator. It may sound silly, and even obvious, but incorrect math is one of the main things IRS agents notice. A simple way to make sure your math is right is to use a calculator and double check your work.
Next, is to explain yourself. If you have unusually large deductions for things like donations or home office expenses, make a note of why they are large. Perhaps you just moved. Experts say that writing anything is better than writing nothing. It can help assure IRS agents that you’re not just trying to get a bigger tax break.
Finally, be smart when using social media sites. The IRS has begun using social media when reviewing tax returns, so if your tax return says you have a modest income, but you post pictures or updates on Facebook or Twitter that seem to imply you have a more lavish lifestyle, it can raise red flags for agents who may suspect fraud.
These are just a few tips to consider as you begin working on your tax returns. If you get word that your tax return is being audited, speaking to an experienced Dallas tax attorney may be beneficial.
Source: Smart Money, “5 Ways to Avoid an IRS Audit,” Kelli B. Grant and Quentin Fottrell, Feb. 10, 2012
