Is there any way to avoid audit on my taxes?

As part of the current Internal Revenue Service (IRS), few taxpayers are completely safe from the audit, but more than 99% can fly under the IRS radar every year. Of the very small percentage, who eventually get into the audit, most are involved in high -risk or high income or are self -employed with significant business deductions listed in their revenues. Others are either randomly selected for quality control purposes, or because they have entered information that increased flags according to the IRS secret formula. Your chances of audit as an average citizen who pay the average amount of federal taxes are still quite minimal, at least theoretically.

One thing you can do to avoid audit is to avoid cash demanding professions such as automatic repairs, waiting tables, games, professional entertainment and anything in hospitality stores. Taxpayers receiving considerable amounts of cash tips or rewards are obligedMany people do not report money from tax forms and the rest of the pocket in reality. If you work in the industry where payments and cash tips are part of your income, you should keep accurate records and report this income to avoid audit. For example, if a bartender working in Las Vegas, Nevada, shows only $ 12,000 (USD) on his taxes, IRS may be surprised whether his income from tips is insufficiently showing.

Another way to avoid audit is to check the mathematics twice before sending the tax return. The IRS computer system can correct minor errors, but the tax return filled with numerous mathematical errors attracts undesirable attention, especially if these errors normally prefer the taxpayer. Errors in personal data, such as addresses or social security numbers, can also increase your chances of audit. YourThe goal is to create your own Return Tax looks as inconspicuous as the rest of the forms sitting on the IRS agent. Electronically administered revenues should be included in the "Lottery for Audit", but it is often a case out of sight, outside the mind.

IRS tends to audit taxpayers with a greater opportunity for income income or require unauthorized business expenses. That is why the disproportionate number of audited taxpayers is either self -employed, or participates in business that IRS considers mature for financial abuse. The self -employed people have to hold enough money every year to fulfill their tax obligations, but also have the right to require a number of legal business expenses to compensate for these obligations. IRS is aware of the temptation to report personal expenses such as business expenditures, so it is not unusual for a self -employed person who has been audited after the tax form filled with doubtful deductions.

your chanceE to the audit will also increase if you work in OCSIPY dubious reputation. Owners of telemarketing companies, direct marketing agencies and personal loan companies can find themselves audited more often than the ordinary population. These types of businesses gain a significant amount of income through tactics of hard sale and consumer abuse, making them interesting goals for IRS agents who want to detect hidden income. If you want to avoid an audit, avoid employment in a gray occupation.

IRS uses a secret formula to determine who can be audited during a three -year opportunity after filing a doubtful tax return. This program called the Discrimination Functional System (DFS) compares the reported numbers to a specific tax form with a set of standards specified years of demographic research. If a taxpayer with his wife and four children lives in Beverly Hills in California, but reports only $ 20,000 in total income, the DFS program will most enjoy the return asSuspect, because income does not correspond to the demography of the city. Similarly, someone who reports a large number of charity gifts compared to its modest incomes can also find that it is audited.

So, in short, it is a trick to avoid audit, report your income as accurately as possible and keep your deductions in the acceptable limit. Avoid increasing flags using IRS and you can avoid audit if you do not win a random "audit lottery" and not find new and exciting ways to sweat.