Friday, April 24, 2009

Information on Avoiding an IRS Audit

Large amounts of itemized deductions on a tax return or large amounts of contributions to non profit organizations can really highlight your return. These are areas where the IRS is really getting tough because of fraudulent claims. Make sure you are very honest about these amounts on your tax returns.

You can be sure there are plenty of agencies that report income to the IRS as well. The online age and access to your personal banking information means that if your tax return is in contradiction with information received from banks, online sites such as PayPal, and other reports then you can be sure they will be contacting you for an audit. Even if you don’t get a 1099 or a W-2 for work you did you need to honestly report that income on your tax return.

Sometimes, however, there is nothing at all that you can do to avoid an IRS audit. Take consolation in that as long as you have done things by the book you will have nothing to worry about. If you are intimidated by the thought of meeting with the IRS though hire a representative to go with you. If you have a tax accountant many of them will work with you for no cost as part of their services. Make sure you keep all of your records for seven years though so you have proof of your claims on your tax returns.

More on this business article or Information on avoiding an IRS audit