Tips for lowering your audit risk
You have been selected for an audit.
Did that give you the chills? You’re not the only one. While being audited isn’t nearly as scary as most people think it is, it’s definitely not an enjoyable experience. To help you avoid that dreaded notice, here are a few tips to keep your taxes from sticking out to the IRS.
Understand who gets audited. Anyone can be audited at any time. However, if you own your own business; deal with a lot of cash, like waitresses or hairdressers for example; or make over $200,000 per year, your audit risk may be higher than average.
Always include explanations. If there is anything that seems out of the ordinary on your taxes, explain it and provide documentation. For example, if you changed jobs or decided to be more charitable and there are some major differences from one year to the next, make sure it’s explained and documented.
Be honest. It’s obvious, but important. If you don’t report all your income on your taxes, you are just asking the IRS to take a closer look.
Get help. This is definitely the catch-all for feeling secure against an audit. Our team at Barlin Business Solutions is trained and ready for any issues that may arise. If you receive a notice from a government agency, just forward the notice to us. We’ll respond within 24 hours in most cases and let you know what to do and how to proceed.