Tips For Avoiding an IRS Tax Audit

Anyone who has ever experienced an IRS tax audit will confirm it is not fun. Now that the IRS will be increasing the number of audits performed each year, it is even more important to take steps for avoiding one in the first place. Here are some of the best tips for avoiding an IRS audit.

• Verify all calculations on your tax return. This is not an issue if you use tax software or an online tax return provider.
• Report all income you receive a tax document for - the IRS gets copies as well and if you do not report this income, they will likely follow up.
• If you are self-employed and file a Schedule C, your chances of getting audited increase significantly.
• Using the home office deduction will increase your chances of getting audited.
• Couples who are married but file taxes separately are at higher risk.
• Do not go overboard on charitable deductions - make sure you have valid proof with reasonable claims.
• Filing late will increase your chances of an audit - do not forget to file for an extension!
• For larger deductions, attach an explanation and copies backing your deduction.
• Verify social security numbers - wrong numbers will increase your risk for an audit.
• Sign your return. This is obvious but not signing your return will put you at higher risk of an audit.

While your odds of getting audited are quite low (less than 1%), it makes sense to follow these tips anyway!