3 Tips for Understanding IRS Audits
Just the mere mention of an IRS “audit” strikes fear in the heart of most Americans.
Unfortunately, what you don’t know can still hurt you when it comes to taxes.
After all, ignorance of the law is no excuse and you must still sign-off on all tax forms prior to the final submission.
Here are 3 quick tips in understanding a little about audits and how you can avoid problems in the first place.
1. Avoid round numbers. Yes, they are easier but it raises a red flag that the amount in question could be made up rather than real.
2. State and federal returns should match. Sounds simple but it’s a common mistake likely to trigger additional scrutiny at one end or the other.
3. Don’t file early. Why give IRS additional time to decide whether or not to audit your return? Remember, they have three years to make up their mind which is more than sufficient time.