As a taxpayer, you do whatever it takes to provide accurate information to avoid trouble with the IRS. But regardless of what you do, there is always the potential for a tax audit at some point in the future.
Fortunately, there are a few things you can do to prevent a tax audit. These tips don't guarantee that you will avoid this situation, but they can't hurt:
- Double check your math before filing your final return. Yes, this will take a little bit of time, but it can go a long way in helping you avoid trouble in the future.
- Don't bend the rules or stretch the truth. When it comes to filing a tax return, honesty is the best policy. As long as you are honest on your return, you don't have anything to worry about. Even in the event of an audit, you know you didn't do anything wrong.
- Don't go overboard with deductions. There is nothing wrong with taking advantage of the deductions that you qualify for. However, you shouldn't go overboard to the point of stretching a bit too far with the idea of saving money.
- Take advantage of e-filing. According to the IRS, an electronic return reduces the likelihood of an error. Conversely, it also reduces the likelihood of an audit.
There is nothing you can do if the IRS wants to audit your tax return. They have the right to do so, so the best thing you can do is cooperate from start to finish. You should gather all the necessary information, know what they are looking for, and act in a timely manner.
As frustrating as it may be, you have nothing to worry about if you know what to expect and how to deal with the IRS every step of the way. So, collect your tax documents and learn more about your legal rights. From there, provide the IRS with everything they need, all with the idea that you want to put your audit in the past as soon as possible.